Property Plant and Equipment capitalization of subsequent costs
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Property, plant, and equipment (PP&E) are a company's physical or tangible long-term assets that typically have a life of more than one year. Examples of PP&E include buildings, machinery, land, office equipment, furniture, and vehicles. Companies list their net PP&E on their financial statements.How do you calculate property, plant, and equipment?
To calculate PP&E, add the amount of gross property, plant, and equipment, listed on the balance sheet, to capital expenditures. Next, subtract accumulated depreciation from the result.
tangible fixed assets
Definition: The property, plant, and equipment (PP&E) account, also known as tangible fixed assets, represents the non-current, physical, illiquid assets that are expected to generate long-term economic benefits for a firm including land, buildings, and machinery.
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