Fixed assets are tangible assets, sometimes referred to as property, plants and equipment, or PP&E. This term only applies to assets that have been completed, however, not to those under construction. Instead, the term "capital work in progress" is used to refer to a company's fixed assets under construction.
What It Means
Only fully completed assets can be classified as fixed assets. When they are under construction, they are listed under capital work in progress. For example, if you are building a factory, it would be classified as capital work in progress until it's completed, at which point it would become a fixed asset. The same applies to new equipment being installed in a factory.