To qualify, assets must be used or converted within a year (or within one operating cycle if that's longer than a year). Fixed assets provide value for a longer period than current assets.

Luis Alvarez / Getty Images A company can account for changes in the market value of its various fixed assets by conducting a revaluation of the fixed assets. Revaluation of a fixed asset is the ...

The cost of an item is allocated to the cost of an asset in accounting if the company expects to consume or use that item over a long period of time. The cost of the item or fixed asset is ...