What are tangible assets

What are tangible assets?

The assets can be classified in term of tangibility i.e. Tangible assets and non tangible .Tangible assets are those assets which can be touched. Examples of tangible assets include land, plant & machinery and vehicles.

What Tangible assets are important?

The tangible assets are important for the organization, because it support the main operations of the business. In case of manufacturing industry it is impossible to manufacture the Goods without tangible assets i.e. plant & machinery.

How tangible asset are initially measured?

Tangible assets are initially measured at cost. Cost of tangible asset included purchase price, cost incurred for making asset available for use and dismantling cost.

What are ready to use cost?

The costs incurred to make the asset ready for use includes installation cost, professional fees, and cost of testing the asset.

What is purchase cost of tangible asset?

Purchase cost of tangible asset includes the purchase price, duties paid on the purchase, transportation of tangible assets.

What are dismantling cost?

Dismantling cost includes the cost of removing the assets and cost of restoring the site.