Fixed assets depreciate because through depreciation process cost of fixed asset charged to all those fiscal years in which that fixed asset is used.
All fixed assets will decline in value over time, by depreciating( the decline in the estimated value of a fixed asset over time) the assets retain some value and the end of their useful life. The profits will also be correctly valued.
Fixed assets are the assets of business concern. The value of these assets, except land, gets depreciated year by year and the allowance of such depreciation is availed for tax exemption purposes on a regular basis. When such the assets are sold for a consideration, it is called the "sale of fixed assets" and the gain / loss on sale of such assets is assessed based on the written down value as on the date of such transaction.
Fixed assets and non-current assets are basically the same. Both are defined as assests that are utilized or depreciated by a company over the course of more than a year.
if loans given for short term period then current assets but if given for long term then non-current assets.
No for many reasons. One, you depreciate tangible assets...a loan is not an asset...if you purchased additions to the property, those would be assets you could depreciate. Cash is intangible. If anything, taking money out of a property would decrease your basis, not increase it! You create the depreciable asset by buying it...not the opposite. You understand you have to recapture depreciation at ordinary rates on sale too, don't you?
the assets will loose their assets vavues because of wear and tear use of goods
All fixed assets will decline in value over time, by depreciating( the decline in the estimated value of a fixed asset over time) the assets retain some value and the end of their useful life. The profits will also be correctly valued.
Fixed Assets are assets that depreciate with a constant on the books. They are physically present on the place. For example a Production machine in Manufacture is a fixed asset. A house is fixed asset. They don't move by themselves unless you move them physically from where they were to another location and for this reason either they have a serial number to track them; or if they don't, they must be tag with a number that tells you where to located them. The depreciation should be constant without fluctuations because of the market.
the expired cost of fixed plant assets such as land, building, equipment, furniture and fixtures and automobile etc.., after a year is known as depreciation. it means that if you depreciate the value of any fixed assets you will be able to estimate its life for the future use..it can help you to estimate the total revenue earned by using that assets.
It is the schadule to show how fixed assets will depreciate in their useful life and show all information according to useful life the depreciation expense charge to income statement and to dispose off them in the end.
Assets that do not depreciate typically include land and certain types of investments, such as stocks or bonds. Unlike physical assets like machinery or vehicles, which lose value over time due to wear and tear, land generally maintains or increases its value. Additionally, intangible assets like trademarks and patents may not depreciate in the same way as physical assets.
fixed assets
maturity of fixed assets means the completion of useful life of fixed assets.
fixed assets / current assets
Surplus on revaluation of assets means that on the even of revaluation, more assets has appreciate in their value then depreciate.
Fixed assets are not liabilities, they are assets that can not be quickly liquidated (turned into cash). If the company goes under, fixed assets would be difficult assets to get cash for.
fixed assets are long term assets which have long term period