All assets other than Current Assets are generally included under the head Fixed Assets. There may be other assets which sometimes are not to be considered as part of fixed assets for the purpose of funds flow analysis.
Accumulated Losses
Items present on the assets side of the Balance Sheet which do not represent assets, like accumulated losses, miscellaneous expenses, discount on issue of shares/debentures to the extent not written off etc., are not to be included in the value of Fixed Assets.
Intangible Assets
Intangible assets like Goodwill should be included in fixed assets only if they have been purchased (or expenditure has been incurred on their acquisition).
Intangible assets like patents, trade marks, copyrights etc., should be included in fixed assets only if they have some realisable value.
Assets to be taken at their Net Values
Assets should be considered at their Net Values (values remaining after setting off depreciation). If asset values are being maintained at their cost i.e. depreciation reserve account exists in relation to any asset, then the cost and the reserve are to be set off and only the net value is to be considered as the value of the asset.
