Definition of Fixed Assets and Plant Assets
My experience indicates that people use the term fixed assets to mean the same as plant assets. As a result, I define both fixed assets and plant assets to be noncurrent, long-lived, tangible assets used in a business. They are reported in the Property, Plant and Equipment section of the balance sheet.
The fixed/plant assets are depreciated over their estimated useful lives (except for land which is not depreciated).
Examples of Fixed Assets and Plant Assets
The following are examples of the non-current, tangible assets known as fixed assets and plant assets which are used within a business and are classified as property, plant and equipment:
- Land and land improvements
- Buildings and equipment
- Furniture and fixtures