In financial statements, the fixed assets are shown at cost price.

Principles of Fixed Assets: The assets having long periods in business are known as Fixed Assets. They are of two types as

(a) Tangible fixed assets

(b) Intangible Fixed Assets.

Land, buildings, Machinery, Equipment, Furniture, and Fixtures, etc. are tang?ble assets, while Patents, Trademarks (Excluding goodwill w.e.f. 1.4.2021), etc. are known as intangible assets. The following points are considered regarding fixed assets:

i) Fixed assets are to be shown at cost price in the first year and thereafter at depreciated value and the amount of any increment should be added, and the amount of depreciation should be deducted.

ii) Fixed assets are not to be shown on the present price or Market price.