Net Plant and Equipment

net plant and equipment

See plant and equipment.

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Net Plant and Equipment

The fixed assets used to produce goods for a company. A factory and the machinery therein are common examples of net plant and equipment. On a balance sheet, net plant and equipment are recorded according to their historical cost. It is important to note that the historical cost of net plant and equipment usually bears little or no relationship to the market value after they have been held for several years. They are also called simply plant and equipment.