Income from Fixed Assets investments?

[IMEX Sourcing Services]

Hi,

I was just wondering, if someone could give me an idea of what sort of things would come under,

"income from Fixed assets investments" in a companys Balance Sheet..

I was thinking, it would be things like, Land held for sale, and _____ ??

Any ideas would be welcome.

Thanks
Ash

 

[Joyous]

Hi Ash

The most obvious answer is income from securities (shares, bonds etc) that a company holds long term for investment purposes. Commonly found in cash rich companies that want a better return than that from simply sticking their money in a deposit account.

Some companies also account for rental income from investment properties under this heading.

Regards

Joy

 

[IMEX Sourcing Services]

Cheers Joy.

I was just wondering, if shares, bonds, etc, would be considered as "Fixed Assets" in this case? any particular reason for this?

Ash

 

[Joyous]

Shares and other securities can be included in either fixed or current assets depending on their purpose. If you are holding them with the intention to sell them within the short term then they'd be classed as a current asset. If they're held for the long term, ie more than one year then they're classed as fixed assets.

Think back to the defenition of a fixed asset, an item that you own and control that is held for the long term from which you expect to derive an economic benefit.

Loads of things that might surprise you can be classed as fixed assets. Check out the balance sheets of some of the premier league football clubs. I'm sure you'll see a number of football players on the balance sheet as fixed assets.

Regards

Joy

 

[IMEX Sourcing Services]

Cheers Joy,

Some fantastic info there.

Ash