ACCT 351 Lecture Notes - Lecture 10: Natural Resource, Office Supplies, Impaired Asset
Document Summary
Property, plant & equipment (ppe) include long-term resources such as, office, factory, and warehouse buildings; investment property; equipment (machinery, furniture & tools); and mineral resource properties. It is also commonly referred to as tangible capital assets, plant assets, or fixed assets. The term depreciation is used to refer specifically to the amortization of ppe, depletion is used for the amortization of mineral resource properties, and amortization is used for intangibles. Property, plant & equipment are assets that have the following characteristics: they are held for use in the production of goods and services, for rental to others, or for administration purposes. They are not intended for sale in the ordinary course of business: they are used over more than one accounting period and are usually depreciated. Through periodic depreciation charges, the cost of the investment in these assets, with the usual exception of land, is assigned to the periods that benefit from using them: they are tangible.
