Important PPE Terms

Term	Simple Meaning
Addition	A new PPE item purchased or constructed during the year
Disposal	A PPE item sold, scrapped or removed from use
Depreciation	Allocation of the cost of an asset over its useful life
Accumulated depreciation	Total depreciation charged from the date the asset was first used
Carrying amount	Cost or valuation of PPE minus accumulated depreciation and impairment losses
Capital expenditure	Expenditure recorded as an asset because it provides benefits for more than one accounting period
Revenue expenditure	Routine expenditure recorded as an expense, such as repairs and maintenance
PPE register	A detailed list of the company's PPE items, sometimes called a fixed asset register or plant register
Impairment	A reduction in the recoverable value of an asset