Generally Accepted Accounting Principles (GAAP) Fixed Assets are tangible or intangible assets that are acquired for productive use in a business or organization and are intended to be used for more than one year. This includes assets such as buildings, land, equipment, furniture, and the cost of investments made to acquire long-term assets. These items are deemed ‘fixed’ because their value does not fluctuate with market conditions or changing economic environments. As such, GAAP requires companies to account for fixed assets over a period of years to reflect their true worth. Keeping accurate records of fixed asset costs and depreciation is essential to compliance and financial decision making.