IAI or Indonesian Institute of Accountants has issued accounting standards for small and medium enterprises ( SMEs ) that SAK ETAP. PDAM Magelang is a regional company that uses SAK ETAP basis in preparing its financial statements. Therefore , the management of its fixed assets also must be done properly in accordance with the accounting standards used, starting from the moment the recognition of fixed assets until the fixed asset is derecognized . This final project aims to determine how the treatment of fixed assets for financial reporting in 2014 contained at PDAM Magelang , including fixed asset recognition , measurement at the time of recognition , measurement after initial recognition , depreciation of fixed assets , impairment of fixed assets , derecognition of fixed assets and fixed assets disclosure by SAK ETAP. The data used in this study in terms of the source were primary data and secondary data, while the review was based on its kind in the form of quantitative data and qualitative data. Data collection techniques used were interviews and literature study, while the techniques of writing were description and exposition. The results of the discussion state that the treatment of fixed assets at PDAM Magelang, including fixed asset recognition, measurement at the time of recognition, measurement after initial recognition, depreciation of fixed assets, and disclosure of assets have been carried out in accordance with SAK ETAP. During 2014, the company did not perform impairment and derecognition of its fixed assets.