ABSTRACT
This chapter examines the identification and depreciation of tangible fixed assets (TFA). Methods of accounting for TFA continued to evolve in the decades of the nineteenth century, particularly in the textile industry where important technological developments resulted in a significant element of capital intensity. At the Charlton Mills, Manchester, depreciation was charged at 5% per annum in 1810 though there was a tendency to charge larger amounts of depreciation in profitable years indicating that profit smoothing is not a new idea. The development of methods of accounting for TFA is best examined chronologically. The chapter focuses on the period up to 1900, 1900–1950 and post-1950. Concerning the accounting treatment of TFA, the major issue to be resolved involved acceptance of the fact that expenditure on TFA should be recognized and reported in CFS throughout their useful economic life.
