A fixed asset is an item or resource that a business acquires to serve its activity over the long term — beyond a single financial year — rather than to be resold or consumed immediately. As such, it is recorded under assets on the balance sheet (class 2 of the French general chart of accounts), as opposed to an expense, which is consumed within the year and posted to the income statement.
Three broad categories are distinguished: intangible fixed assets (software, patents, goodwill, etc.), tangible fixed assets (equipment, machinery, vehicles, furniture, buildings) and financial fixed assets (equity investments, loans, deposits and guarantees).
Most fixed assets lose value over time or through use: this loss is recognised through depreciation, which spreads the cost of the asset over its expected useful life (straight-line or declining-balance method). Under an administrative tolerance, low-value items (in practice €500 excluding tax) may be expensed directly rather than capitalised.
Tracking fixed assets relies on a depreciation schedule and regular updating of the accounts. In eyeot's finance module, fixed assets are tied to class 2 accounts and appear in the FEC like any other entry.