Fixed Assets

Fixed assets are the properties owned by the company and used in business operations for long periods exceeding one year, and are valued above the annual depreciation threshold. Fixed assets include a wide range of assets used in production, such as:

1. Buildings: include facilities and buildings owned by the company and used in production or as administrative offices.

1. Machinery and Equipment: include devices and equipment necessary for production or service operations, such as heavy machinery, tools, and manufacturing equipment.

1. Vehicles: include cars, trucks, and other vehicles used in transportation or distribution operations.

1. Land and Non-depreciable Buildings: include land and real estate owned by the company and used for business purposes.

1. Other Assets: fixed assets may also include patents and trademarks, and intangible assets such as software and licenses.

Importance of Fixed Assets:

• Support for Production and Service Operations: fixed assets provide the company with what it needs to carry out its daily operations and deliver services.

• Investment in the Future: fixed assets represent long-term investments that contribute to the company’s growth and sustainability over the long term.

• Financing Capability: fixed assets can be used as collateral to obtain external financing from banks or investors.

Fixed Asset Valuation and Management:

• Periodic Valuation: fixed assets must be valued regularly to ensure that they reflect current value and market developments.

• Maintenance and Repairs: regular maintenance and repairs should be performed to ensure asset continuity and reduce additional costs.

• Replacement and Revaluation: replacing or revaluing fixed assets may be required based on technology developments or company needs.

Fixed assets are a fundamental part of the capital structure of any company and significantly affect the competitiveness and financial sustainability of the enterprise in the market.