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Fixed Assets

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Fixed assets are the assets and rights acquired or manufactured by the company that are destined for the main activity of the company, so it's the most important item of the non-current asset.

They can be both assets acquired by the company (machinery or land for example), and manufactured by it (patents or software for example).

- Remains in the company for a long time: This means that the presence in the company is at least more than one year.
- In principle, it isn't intended to be sold: As for example, it does happen with merchandise. Even so, some element of the fixed assets may be sold exceptionally.

Classification of fixed assets

The fixed assets can be divided into two large groups, by virtue of whether they have a physical appearance or not:

- Inmobilized material
- Intangible Assets

Next, we will develop each of the above concepts.

Inmobilized material

Property, plant and equipment are defined as those elements of the asset that are tangible and are represented by movable or immovable property, except those that must be classified as real estate investments. The Plan itself establishes the following classification of items of property, plant and equipment:

- Terrens and natural goods
- Buildings
- Technical facilities
- Machinery
- Tools
- Other facilities
- Furniture
- Information processing equipment
- Transportation elements
- Other property, plant and equipment

This classification, which is an open and non-exclusive list, is found in subgroup 21 of the chart of accounts of the General Accounting Plan.

Among the property, plant and equipment are the assets with the highest valuation, mainly due to the presence of land and buildings.

Intangible Assets

Intangible assets are made up of non-monetary assets without physical appearance, provided that they are subject to economic valuation. As with property, plant and equipment, the General Accounting Plan establishes a classification of intangible assets:

- Investigation
- Developing
- Administrative concessions
- Industrial property
- Goodwill
- Transfer Rights
- Computer applications
- Advances for intangible assets

In addition to the previous ones, the opening of new intangible assets accounts is allowed if there is an intangible asset that meets the requirements to be considered as an intangible asset.

Amortization, depreciation and impairment of fixed assets

Over time, the fixed assets, both material and intangible, lose value. There are a number of accounting figures to reflect these losses of value:

- The amortization and depreciation: They reflect the loss of value by the habitual use of fixed assets.
- Impairment. It reflects the loss of value for reasons other than the usual use of fixed assets. Unlike depreciation and depreciation, this impairment may be reversed in the future. This figure isn't exclusive to fixed assets; there are also impairments in the stock or merchandise.


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