plant and equipment


Also found in: Acronyms.

Plant and Equipment

The fixed assets used to produce goods for a company. A factory and the machinery therein are common examples of plant and equipment. On a balance sheet, 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 net plant and equipment.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

plant and equipment

The fixed assets that are used to produce the goods and services that a firm sells to its customers. On a corporate balance sheet, plant and equipment are valued at original cost. Plant and equipment become net plant and equipment when adjusted for accumulated depreciation. Also called net plant and equipment.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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