fixed asset

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RITIKA

RITIKA (Querist)
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10 August 2009 why it is called a fixed asset and diff bw fixed and floating asset

CA Nitish Jain

CA Nitish Jain (Expert)
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13 August 2009 Fixed asset is the one having its useful life for more than one year and is capable of being capitalized.

Also, the Asset you are calling as "Floating" is actually current asset which is utilized within a financial year.

you should refer to Accounting Standard 10 on 'Accounting For Fixed Assets' to clear your doubt. If you need basec knowledge, go for text book on accounts of class XI and XII.