Type of asset

1. Fixed asset or long term asset : Physical in nature. Motor vehicle, building, equipment, furniture, land
2. Current asset : Liquid in nature. The balance amount go on changing. Cash, Debtor, Income accrued
3. Non current asset : Not in physical nor in liquid form. Very hard to evaluate. Patent, copyright, goodwill

To depreciate or not to depreciate
Fixed asset value mostly are depreciated (except land) because everyday utilization. The loss in value mostly are determined at the time of purchased based on the permissible method such as reducing balance method, yearly method or straight line method etc.

Current asset are in exception of this rule.

Non current asset also depreciated but the term use to show the deterioration of value is dissimilar. We called it amortization. And the amount of losses is dependable of the condition concern such as due to company that may put under administration, probably being taking over, in the process of legal suit etc.