property , plant, and equipment is defined as tangiable assets that are held for use in production or supply of goods and services, for rentals to others, or for administrative porposes; they are expected to be used during more than one period.
- ” used in operations” and not for resale
- long-term in nature and usually depreciated
- possess physical substance
include : land, building structures (offices, factories, warehouses), and equipment (machinery, furniture, tools).
companies value property, plant, and equipment in subsequent periods using either the
- cost method or
- fair value (revaluation) method