What is Fixed Asset Accounting?

Fixed Asset Accounting is a branch of accounting focused on tracking and managing a company's long-term tangible assets, often referred to as fixed assets. These assets include property, plant, and equipment (PP&E) like buildings, machinery, vehicles, furniture, and land. It involves recording the acquisition, depreciation, maintenance, and disposal of these assets. It's commonly used to ensure accurate financial reporting, comply with accounting standards (like GAAP or IFRS), and optimize asset utilization and investment decisions. Depreciation methods are employed to systematically allocate the cost of an asset over its useful life.