a Scope of this Chapter

This chapter is concerned with tangible fixed assets, including investment properties and capital grants in relation to such assets. Chapter 12 deals with fixed assets under finance leases.

Intangible fixed assets are dealt with in Chapter 13, whilst fixed asset investments are covered in Chapter 17.

b Relevant Regulations

Companies Act 1985, Schedule 4, deals with disclosure and accounting requirements but not to the extent of coverage in related accounting standards such as FRS 15 and SSAP 21.

FRS 15, Tangible fixed assets, is the key standard in this area. Other key standards are:

• FRS 11, Impairment of fixed assets and goodwill see 12.8 below.

• SSAP 21, Accounting for leases and hire purchase contracts (including guidance notes) see Chapter 14.

• UITF 29 Website development costs (see 12.7).

• SSAP 19, Accounting for investment properties see 12.11 below.

• SSAP 4, accounting for government grants see 12.12 below.

c Definition of Tangible Fixed Assets

FRS 15 defines tangible fixed assets as:

"Assets that have physical substance and are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes on a continuing basis in the reporting entity's activities".

d Fixed Asset Categories

Companies Act 1985, Schedule 4, specifies a minimum of:

1. land and buildings,

2. plant and machinery,

3. fixtures, fittings, tools and equipment.

In practice, companies often take advantage of the option in the Companies Act 1985 to show the above items in greater detail. Additionally, the Act requires modification of wording where "the...