Financial of their fixed tangible assets are

Financial Statements are prepared for an accounting period, generally for a year.

This accounting period is referred to as a ‘fiscal year’ and differs from a calendar year since the accounting period may differ based on company needs or industry practices. For example, the fiscal year ends in January for many retail sector companies due to the high sales volumes experienced at the end of the calendar year. Long term investment is the investment which a company invests their funds in other company’s bonds or stocks. But company invests cash into purchase of their fixed tangible assets are called Property, plant, equipment.

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Long term investments are not useful for operating their business activities. Property, plant and equipment are useful to operate company’s day to day business activities. Long term investments are reported in the section of long term investments of the balance sheet. But these tangible fixed assets (building, land, etc) are reported in property, plant and equipment section of the balance sheet.


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