The Fixed Assets Management is the Traditional Financial Statement Analysis method of a business enterprise. While financials of a company furnish useful data regarding its operations, a serious limitation of these statements is that they do not provide information regarding changes in the firm’s financial position during a particular period of time. Fixed assets are acquired for use in the business for earning revenues so they are shown at their book values. A fundamental concept of accounting, closely related to the going concern concept, is cost concept of accounting. According to this concept, a fixed asset is recorded in the books at the price paid to acquire it and that this cost is the basis for all subsequent accounting for the asset. This concept does not mean that the fixed asset will always be shown at cost but it means that cost becomes basis for all future management decisions. Asset is recorded at cost at the time of its purchase but is systematically reduced in its value by charging depreciation. The market value of a fixed asset may change with the passage of time, but for accounting purpose it continues to be shown in the books at its book value, i.e., the cost at which it was purchased minus depreciation provided up-to-date. Fixed asset being the major investment in business, is considered main element to evaluate the performance of the business and used in many ratios.

KEYWORDS: Traditional Financial Statement, Companies Act, 2013, Return of Fixed Assets.