Items that the business owns that can be seen or touched. For many businesses, these typically include land, buildings, fixtures and fittings, machinery and vehicles. They provide collateral (security) for a loan from the bank. Land is the only item accountants normally accept that can be revalued. Buildings can be freehold (owned forever) or leasehold (owned for a specified period). Other fixed assets are written off by depreciation over an agreed period of time. They are shown in the balance sheet at Net Book Value, ie purchase cost less cumulative depreciation, not current market value.