TABLE OF CONTENTS In earlier chapters we established that tangible fixed assets share several common features.
They have physical substance
They are for long-term use within the business and expected to generate future benefits (e.g. facilitate the production of stock)
They are not actively traded although a business will buy and sell such assets as they wear out or as the business grows.
Tangible fixed assets take many forms.
Various labels are sometimes associated with this type of asset, and hence be on your guard for:
| L&B | Land and buildings |
| PPE | Property, plant and equipment |
It is because that they are often items with which we are familiar that many see little accounting danger in these assets, but to a creative finance director they represent a golden opportunity for them to manipulate the financial statements.
