Fixed assets are a very important part of the economy. So it’s good to know something about him.

Fixed assets have certain functions, these are:a) The shelf life is more than 1 year, and B) Its form does not change, but wears (wear is depreciation table We divide fixed assets into tangible, intangible, financial and technical assets.

There are 2 subcategories of fixed assets. A) Immovable – immovable property is such a property, which is firmly connected with the Earth (each, somehow, can not move it). For example, land and buildings belong to immovable property. We must note that the land will not be written off, and the overall real estate prices do not play a role. B) Movable – mobility is not firmly connected to the ground (or can be moved in some way); An example is a computer system. The price here, unlike real estate, is set at CZK80,000- 2021 (it can be set either in the company or in the Income Tax Act). If the property does not reach this value, it is classified as a small tangible asset.

Intangible assets have no tangible form. This is already clear from the title. Examples of this property are software, licenses, patents, and so on.Long-term financial assets are less common for companies. These assets are never written off, for example, securities. Technical assessment is, in fact, an increase in the value of fixed assets in the form of either reconstruction or modernization or modification of buildings. We distinguish between large and small technical ratings.

There are 3 types of valuation of fixed assets. A) Cost – This price will occur if we actually buy the property. It consists of the purchase price and incidental costs associated with the acquisition of fixed assets (assembly, transportation). B) Self-cost – We use this type of valuation when we produce assets by our own activities (each is the sum of all the costs spent on production). C) Replacement Costs – We use replacement costs if we acquire property by deposit, donation or other gratuitous transfer. The price is determined by an appraiser expert and the price then represents the value of the property on the day of its valuation.

You can buy long-term assets.

It can be eliminated by liquidation, sale, donation, etc.