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July 21, 2008

What is reported as property, plant and equipment?

Property, plant and equipment is the long term or noncurrent asset section of the balance sheet. Included in this classification are land, buildings, machinery, office equipment, vehicles, furniture and fixtures used in a business. Also included in property, plant and equipment is the accumulated depreciation for these assets (except for land, which is not depreciated).

The assets reported as property, plant and equipment are described as long-lived, tangible assets. They are also described as fixed assets or as 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.

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About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.

He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.



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Comments

12 Responses to “What is reported as property, plant and equipment?”

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  8. Walter on April 3rd, 2009 3:47 pm

    You give a definition, but you don’t cite any sources. So, without a cited reference, your definition is worthless. Who says that PP&E is defined as you said? The FASB? Where? That is what I need to know.

  9. bleiuge on April 8th, 2009 6:02 am

    what’s the difference between equipment and furnitures&fixtures?
    tnx

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  12. Sophie on December 14th, 2009 1:14 am

    Not an accounting person. need to know how to record the purchase of building for less then valued, example purchased for $120K, valued at $150K, what is the entry to record and how do I track the Note payable the the book value are the interrelated? Please advise.

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