Fixed assets, also known as tangible assets or property, plant, and equipment, are long-term physical assets held by a business for use in its operations and not for sale. These assets provide value to the operations of a company over several years.
A reserve for depreciation, also known as accumulated depreciation, helps businesses account for the gradual reduction in value of their fixed assets over time due to wear and tear, obsolescence, or other factors.
Sum-of-Years’-Digits (SYD) is an accelerated depreciation method that segments the depreciation of an asset by applying larger deductions at the beginning of the asset's useful life and smaller deductions towards the end.
