What is fixed asset and how account as per accounting standards?

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Accepted Answer

Fixed assets are long-term tangible assets that are used in the production of goods or services and have a useful life of more than one year.

Fixed assets include property, plant, and equipment (PP&E), such as buildings, machinery, and vehicles.
They are recorded on the balance sheet at their original cost, less accumulated depreciation.
Depreciation is the systematic allocation of the cost of a fixed asset over its useful life.
Accounting standards require that fixed assets be reviewed for impairment on a regular basis.
When a fixed asset is sold or disposed of, any gain or loss is recognized in the income statement.

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