Plant Assets
Accounting glossary · Understand, connect, apply
Plant assets are tangible long-lived resources used in operations, such as buildings, machinery and equipment, rather than held primarily for ordinary resale.
Example
A manufacturer’s production machine is a plant asset, while machines held by a dealer for sale are inventory.
Remember the difference
Plant assets are commonly called PPE. Land and depreciable assets may require different subsequent accounting.
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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