Meaning of Property, Plant and Equipment
Property, Plant and Equipment (PPE) are non-current assets used by a business to support its operations. These assets are normally used for more than one accounting period and are not purchased for immediate resale.
Examples of PPE include:
| Category | Examples |
|---|---|
| Property | Land, factory buildings, office buildings and warehouses |
| Plant | Machinery, production equipment and manufacturing systems |
| Equipment | Computers, office furniture, air conditioners and photocopy machines |
| Vehicles | Cars, vans, lorries and delivery motorcycles |
PPE may be owned by the business or held under an appropriate lease arrangement. The slides identify land and buildings, machinery, vehicles, furniture and other equipment as common PPE categories.
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