Fixture definition

What is a Fixture in Accounting?

A fixture is a fixed asset that is physically attached to property. A fixture cannot be removed without causing damage to the asset. Examples of fixtures are integrated lights, built-in cabinets, toilets, and sinks.

Accounting for Fixtures

If a fixture costs more than the capitalization limit set by a business, then it is recorded as a fixed asset, and is depreciated over its useful life. If the fixture costs less than the capitalization limit, then it is charged to expense as incurred.

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