Property, Plant, and Equipment
Accounting glossary · Understand, connect, apply
Property, plant and equipment (PPE) are tangible assets held for production, supply, rental or administration and expected to be used over more than one period.
Example
A delivery business uses a van to provide services over several years rather than buying it for resale.
Remember the difference
An item held for resale is normally inventory, not PPE. Depreciation begins when a depreciable asset is available for use.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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