Tutorial: Business Academy

Topic: Fixed Assets - concept, division

Prepared by: Ing. Jana Šustrová

Projekt Anglicky v odborných předmětech, CZ.1.07/1.3.09/04.0002

je spolufinancován Evropským sociálním fondem a státním rozpočtem

České republiky.

Fixed assets Shelf life longer

than 1 year A certain amount

of value Gradually getting

worn-out 1-year wearing =

depreciation

Current assets Shelf life shorter

than 1 year Disposable

consumption Changeable form Supplies, debts Money, short-term

securities

A kind of long-term property Shelf life or maturity time is longer than

1 year Not losing its original form, gradually

getting worn-out Divided into 3 types

- tangible- intangible- financial

Buildings, land, artwork and collections, regardless of their value

Individual movable assets whose valuation is higher than the limit set by the company in its internal directive (usually CZK 40 000,--, which is the limit specified by the Law on Income Tax for depreciation of property) – such as machinery, cars

Cultivated areas with a fertility rate of more than 1 year – such as orchards, vineyards

Adult animals and groups of them (herds, flocks)

Assets with a shelf life longer than 1 year, but valuation lower than the limit set by the company (notebooks, PC printers, mobile phones, etc.)

A kind of intangible property, with the shelf life longer than 1 year and since the valuation limit, set by the company (usually CZK 60 000,-- according to the Law of the Income Tax).◦ Formation expenses◦ Intangible results of research and

development◦ Software◦ Valuable rights (licences, patents)◦ Know-how◦ Goodwill

Securities and shares, investments with maturity or holding period longer than one year (stocks, bonds)

Long-term loans

material in stock valued at CZK 180.000 software for CZK 65.000 land for CZK 35.000 photocopier for CZK 60.000 car for CZK 39.000 building for CZK 250.000 program for payroll processing for CZK 40.000 computer for CZK 42.000 bonds valued at CZK 100.000 with a maturity period of 6

months 25 mobile phones, 1 pc for CZK 3.000

1. Production hall2. Accounting software3. Car 4. Land 5. Administration building6. Shares 7. Licence 8. Know-how9. Production line 10. Notebook for CZK

22.000

A. Tangible fixed assets

B. Intangible assetsC. Long-term

investmentsD. Minor fixed assets

Klínský P., Münch O. Ekonomika pro obchodní akademie a ostatní střední školy . Praha: EDUKO nakladatelství, s. r. o.,2008, ISBN 978-80-87204-03-0.

Vyhláška 500/2002 Sb.