A fixed asset is an item with a useful life greater than one reporting period and with a value greater than some minimum value normally set by your local tax authority. It will be purchased for productive use, and not for resale in the short term. Thus assets such as land, buildings, equipment, machinery, vehicles, and leasehold improvements are fixed assets, whereas goods purchased for resale (inventory) are not.
When a fixed asset is purchased, it cannot be treated as an expense. Instead a portion of it is expensed over the life time of the asset. This is known as depreciation, and the allowable rates of depreciation are normally set by the local tax authorities, and hence differ from country to country.
The MoneyWorks Asset Register is designed to facilitate the acquisition, depreciation and disposal of assets, both from an operating and financial perspective. It supports straight line and diminishing value depreciation, calculated either monthly or annually.