All companies have fixed assets that are necessary for their activity. Property, plant and equipment is a long-term asset used to operate the business over several years. Tangible fixed assets will allow the company to produce products and services. For example, here is a list of assets that are frequently found among property, plant and equipment:
  • Field
  • The building
  • The parking
  • Factory
  • The warehouse
  • Material or equipment
  • office furniture
  • machinery
  • tooling
  • Computer equipment
  • Rolling stock (truck, automobile, tractor, etc.)
The characteristics of property, plant and equipment are as follows:
  • They have a physical existence, but they are not incorporated into the product;
  • They have a relatively long lifespan;
  • They are acquired for the operation of the business and not to be resold.
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