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Fixed assets

Last updated: 2021-06-21

According to the Accounting Act, fixed assets are assets that are intended to be permanently used or held in the company. In practice, permanent means a period of at least one year.

There are three types of fixed assets:

  • Tangible: Physical assets, for example inventory
  • Intangible: Non-physical assets, for example internally developed assets
  • Financial: Long-term investments, for example shares in group companies or endowment insurance

Fixed assets are valued according to the acquisition value, i.e. the expenses for the acquisition or production. Most fixed assets have a limited useful life and must therefore be depreciated over time, usually over five years. The value of the asset then becomes the acquisition value minus the depreciation that has been done.