Learn in the textbookClassification of Assets and Liabilities
DefinitionTangible assets (有形資産) are non-current assets with physical form, such as land, buildings and machinery, and appear on the balance sheet as tangible fixed assets (有形固定資産).
ExplanationTwo representative ways to calculate depreciation are the straight-line method (定額法) and the declining-balance method (定率法) shown in the figure. Land, on the other hand, is not depreciated, because it is not considered to lose value through use.
AnalogyAmong the things a shop keeps using for years, the ones you could photograph, like the shop building or the kitchen equipment.