Arrange 'Fixed Assets' in proper order

(A) Intangible assets under development

(B) Tangible assets

(C) Intangible Assets

(D) Capital Work in Progress

Choose the correct answer from the options given below:

As per Schedule III of the Companies Act, 2013, Fixed Assets (Non-Current Assets) are presented on the Balance Sheet in the following sequence:

1. Tangible Assets (Property, Plant and Equipment)

These include land, buildings, plant & machinery, furniture, vehicles, etc. that have physical existence.

2. Intangible Assets

These include goodwill, patents, trademarks, computer software, etc. that lack physical existence but provide economic benefits.

3. Capital Work in Progress

This represents tangible assets under construction or installation that are not yet ready for use.

4. Intangible Assets under Development

This represents intangible assets that are in the development phase and not yet ready for use.

The logic behind this order is that completed assets (both tangible and intangible) are shown first, followed by assets under development or construction. Among completed assets, tangible assets are shown before intangible assets as they form the primary operational assets of most businesses.

Therefore, the correct sequence is: (B), (C), (D), (A)

Correct Answer: Option 2