plant and equipment


Plant and Equipment

The fixed assets used to produce goods for a company. A factory and the machinery therein are common examples of plant and equipment. On a balance sheet, plant and equipment are recorded according to their historical cost. It is important to note that the historical cost of net plant and equipment usually bears little or no relationship to the market value after they have been held for several years. They are also called net plant and equipment.

plant and equipment

The fixed assets that are used to produce the goods and services that a firm sells to its customers. On a corporate balance sheet, plant and equipment are valued at original cost. Plant and equipment become net plant and equipment when adjusted for accumulated depreciation. Also called net plant and equipment.