Definition of Property, Plant and Equipment
Property, plant and equipment is the long-term asset or noncurrent asset section of the balance sheet that reports the tangible, long-lived assets that are used in the company’s operations. These assets are commonly referred to as the company’s fixed assets or plant assets.
Generally, the property, plant and equipment assets are reported at their cost followed by a deduction for the accumulated depreciation that applies to all of these assets except land (which is not depreciated).
Examples of Property, Plant and Equipment
Typical assets that are included in property, plant and equipment are land, buildings, machinery, equipment, vehicles, furniture, fixtures, office equipment, etc. which are used in the business. Also included in this balance sheet classification is a subtraction of the accumulated depreciation that pertains to these assets.
