Asset Balance Sheet Categories

Balance Sheet Category

Definition

Buildings

A permanent or temporary structure enclosed within exterior walls and a roof, and including all attached apparatus, equipment, and fixtures that cannot be removed without cutting into ceiling, floors, or walls.

Fitting and Fixtures

There is no legal definition of what constitutes fixtures and what constitutes fittings, however, it is generally considered that ‘fixtures’ are items that are firmly secured or bolted to the walls or floor and ‘fittings’ are free standing items but still belong to the building.

Fixtures:

• Central-heating boilers and radiators.
• Sinks, baths, lavatories.
• Kitchen units or other items of furniture bolted to the floor.
• Wardrobes that are made to fit a particular space and would be incomplete if removed, for example, if they use a wall to form one of their sides.
• Wall paintings/Murals.
• Light fitments.
• Woodstove (built-in).

Fittings:

• Electric stove (not built-in).
• Paintings or mirrors that are hung or screwed to a wall.
• Carpets.
• Curtains and curtain rails.
• Free-standing ovens, refrigerators and washing machines.
• Lampshades.
• Television aerials and satellite dishes.

Goodwill

An intangible asset is defined as something that provides a competitive advantage, such as a strong brand or reputation. In an acquisition, goodwill appears on the balance sheet of the acquirer in the amount by which the purchase price exceeds the net tangible assets of the acquired company.

Intangibles

Something of value that cannot be physically touched, such as a brand, franchise, trademark, or patent.

Land

An area of ground, especially one that is used for a particular purpose such as agriculture, including things permanently attached by nature, such as trees, geological features and water.

Livestock

Cattle, horses, poultry, and similar animals kept for domestic use but not as domestic pets.

Motor Vehicles

Any motor car, motor carriage, motorcycle.

Other

Other assets are assets that don't fit into any other category. Assets of relatively small value.  Firms frequently combine small assets into a single category for financial reporting purposes rather than listing each item separately.

This balance sheet classification covers minor assets such as prepaid expenses and scrap value of obsolete equipment.

Plant and Equipment

Assets of a durable nature that are used to provide current and future economic benefits to the business.

• Computers and all kinds of office furniture and equipment.
• Vans, trucks, cranes and diggers.
• ‘Integral features’ of a building or structure.
• Other building fixtures, such as shop fittings, kitchen and bathroom fittings.
• All kinds of business machines, such as printing presses, lathes and tooling machines.
• Tractors, combine harvesters and other agricultural machinery.
• Gaming machines, amusement park rides.
• Computerised /computer-aided machinery, including robotic machines.
• Wind turbines and fibre optic cabling.

Property

This classification covers property purchased by the business outside normal business use e.g. rental or investment properties.

Trading Stock

Trading stock is defined as including 'anything produced, manufactured or acquired that is held for purposes of manufacture, sale or exchange in the ordinary course of a business.' (law.ato.gov.au).

Stock held by the business for sale to its customers.