Long term assets or fixed assets are the assets that have a useful life of more than one year. Long term assets are recorded at cost less any accumulated depreciation and impairment losses to reach a net book value.
The building, equipment, furniture, etc.
Long term assets are normally held for use instead of sale like inventories. The cost of the assets that are long term in nature is recovered by using them for generating cash flows. The useful life is always more than one year however the depreciation method decides the time period for which the asset will be in use.
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