Fixed Assets & Depreciation: An Easy Guide

1500 words, 7 min to read
written by Agnes Granroth , ILGA-Europe
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TL;DR

Fixed assets are physical things that your organisation owns, such as electronic equipment, real-estate or vehicles

When you buy a fixed asset to use on a project, it might not be possible to include the total purchase value at once

The two most used methods of depreciation are called ‘straight-line’ and ‘diminishing balance’

The most common way of accounting for the value of fixed assets is depreciation, and some of the key concepts are outlined in this article. But your organisation should choose the approach that works best for you!

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