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Trade according to the law

When carrying out any of the business operations that are between two or more parties, it is important that these business operations are based on legal foundations, to preserve the rights of all parties, for example, a person who wants to sell his house for a sum of money, at first he will advertise the house And its specifications within the official newspapers or social networking sites or through friends and relatives, then a contract for sale is signed between the two parties consisting of two copies, a copy for the seller and a copy for the buyer, and this is to ensure the rights of both parties. It will talk about the standard of fixed assets.

What is the origin

Before identifying the fixed assets standard, it is necessary to know what the asset is, as the word “asset” refers to a group of long-term economic and commercial resources, which are owned by a group of capital owners and commercial companies to generate material income, where assets are considered a group of physical elements such as money, inventory or land Buildings and cars in general, and the term assets is also called a group of money and valuable materials owned by individuals or companies, and the term asset is divided into accounting and economics into two main types, namely, tangible assets and intangible assets, where tangible assets contain different subsections that have a material value unlike intangible assets. Tangible, which are intangible rights and resources that are between two or more parties, and fixed assets are included in the company's balance sheet.

Fixed Asset Standard

Fixed Asset Standard
Fixed Asset Standard

Fixed assets are recorded in the balance sheet or within ad hoc financial statements in accordance with a set of accounting standards and transactions. These standards are considered among the main bases that are used within the fixed asset lists. The following is a detail of the fixed assets standard:
  • Periodic depreciation of tangible assets: which is to indicate the gradual decrease in services that can be obtained from tangible assets, as it is used to describe the cost of tangible assets.
  • Treatment of intangible assets: This is done by recording the amounts paid and in excess of the basic value of the asset, in order to be re-measured periodically and then included in the financial statements and balance sheet of the company.
  • Determining net book value: net book value is defined as the difference between the cost of an asset and its associated depreciation.

Fixed Assets Definition

Fixed assets are defined in accounting as a group of non-current property, plant and equipment that cannot be converted into cash or money, which is compared with current assets such as bank accounts, and fixed assets are assets whose economic benefit is likely to flow to the company in the future, and whose cost can be measured reliably It is simplified according to the International Accounting Standard, and what distinguishes a fixed asset is that it is not sold directly to consumers and users, and fixed assets include a group of items such as land, furniture, office supplies, and computer equipment, and the cost of fixed assets is the purchase price.
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