| Definition |
- Fixed assets are further classified into tangible assets and intangible assets.
- Tangible assets refer to assets, such as land, machinery, equipments, furniture and fixtures, animals and plants, that are completely exhausted during a production process (accounting period: 1 year) and do not get converted into a product.
- They are used as inputs in a production process over a period of several years.
- Intangible assets are not physical in nature and they refer to assets which have significant influences on the asset formation of households such as the rights of cultivation, business rights, fishing rights, etc.
- Intangible assets are further classified into quick assets and assets in stock.
- Quick assets includes financial assets, such as cash, deposits and account receivable which they themselves can not be used directly as inputs of production but need to be converted into fixed asset or quick asset.
- Assets in stock include agricultural products which are produced and mostly disposed within the same accounting period.
- They also include production materials used in a production process which the value of the materials are mostly converted into products.
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