Advanced English Dialogue for Business – Fixed assets

Listen to a Business English Dialogue About Fixed assets

Paisley: Hi Matthew, do you know what fixed assets are in business and finance?

Matthew: Yes, Paisley. Fixed assets are long-term tangible assets that a company owns and uses to generate income, such as buildings, machinery, and equipment.

Paisley: Right, they’re called fixed assets because they’re not easily converted into cash and are expected to provide benefits to the company for more than one accounting period.

Matthew: It’s interesting how fixed assets are recorded on the balance sheet at their original cost, less any accumulated depreciation.

Paisley: Yes, depreciation is the process of allocating the cost of a fixed asset over its useful life to reflect its gradual wear and tear.

Matthew: And companies regularly assess the value of their fixed assets to ensure they accurately reflect their true worth.

Paisley: Absolutely, maintaining accurate records of fixed assets is essential for financial reporting and decision-making.

Matthew: It’s important for companies to properly manage and maintain their fixed assets to maximize their value and utility.

Paisley: Yes, proactive maintenance and periodic upgrades can extend the useful life of fixed assets and enhance their productivity.

Matthew: And companies may also need to dispose of fixed assets that are no longer needed or have become obsolete.

Paisley: Right, disposing of fixed assets involves recording any gains or losses on the balance sheet.

Matthew: Overall, fixed assets play a crucial role in a company’s operations and are key components of its long-term success.

Paisley: Absolutely, Matthew. They represent significant investments that require careful management and strategic planning.