Fixed assets, also known as
tangible assets or
property, plant, and equipment (
PP&E), is a term used in
accounting for
assets and
property that cannot easily be converted into
cash. This can be compared with
current assets such as cash or bank accounts, which are described as
liquid assets. In most cases, only tangible assets are referred to as fixed.
IAS 16 (International Accounting Standard) defines Fixed Assets as assets whose future economic benefit is probable to flow into the entity, whose cost can be measured reliably.