Fixed asset

Property and equipment are tangible assets that are owned by a company in the long run remain in the company and are usually necessary for operation, so necessary to maintain the production and operation. Property and equipment are recorded in the balance sheet on the assets side and are included in financial assets and intangible assets to fixed assets. They are sorted according to their resaleability, that is the easiest to selling item is the last one.

The balance sheet item of property and equipment is structured according to § 266 HGB in four points to:

• The point of "Land, leasehold rights and buildings, including buildings on third party land " includes the above-mentioned elements of capital of a collective position. A separation in depreciable and non- depreciable values ​​is not mandatory but permissible. In addition to land, buildings, building leases and ownership of dwellings and mines this includes devices which are in use, eg heating systems.
• " Plant and equipment " means any equipment used directly in production.
• To the "Other equipment, factory and office equipment" includes all assets that are not used directly for the production. This can be, for example, the fleet or the PBX.
• The term " assets under construction, payments on investments" should be listed expenditures for facilities that are not yet completed at the balance sheet date. These expenses are not expenses but are included in the value of future investment and are therefore to be activated in the balance sheet.

Economics

The National Accounts ( SNA) is based on an asset account that is facing the economic wealth objects ( tangible assets and receivables ) liabilities. Tangible assets are comprised of property and equipment, intangible assets and the land. Tangible assets consist of cultivated assets, equipment and buildings.