Is investment real estate a fixed asset?

Investment real estate is not a fixed asset.

Investment real estate refers to real estate held to earn rent or capital appreciation or both. Investment real estate should be able to be measured and sold separately. Investment real estate mainly includes: leased land use right, land use right held and ready to be transferred after appreciation, and leased buildings.

Definition of investment real estate:

Investment real estate refers to real estate purchased or built by enterprises or individuals for investment purposes such as long-term holding, leasing or value-added sale. Investment real estate usually includes office buildings, shopping centers, hotels, apartments and so on. Factories and warehouses used for commercial purposes and for industrial purposes.

To sum up, investment real estate belongs to investment assets, and investment assets refer to long-term savings, insurance premiums, stocks, bonds, funds, futures and other investment currencies or bills for the purpose of maintaining and increasing value.

Legal basis:

Article 2 of Accounting Standards for Business Enterprises No.3-Investment Real Estate

Investment real estate refers to real estate held to earn rent or capital appreciation or both.

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Fixed assets refer to tangible assets with the following characteristics:

(1) To produce goods, provide services, lease or operate;

(2) Its service life exceeds one fiscal year.

Service life refers to the expected period for an enterprise to use a fixed asset, or the quantity of products or services that the fixed asset can produce.