What are plant assets?

This applies to any building or facility an organization owns, such as a factory, plant, or even office. The costs and expenses involved in the upkeep or renovation of the buildings are also associated with plant assets.

• Land

Land includes expenses related to any land the organization owns, and any improvements they might make upon it, such as filling, grading, or clearing.

• Machinery and equipment

This includes the expenses associated with acquiring, installing, implementing, and maintaining machinery and equipment used by an organization. Many items can be included in this category, such as computers, vehicles, and manufacturing equipment and tools.

• Furniture and fixtures

This includes the expenses associated with acquiring and maintaining different furniture and fixtures used by an organization in any of its offices or facilities. Common examples include desks, chairs, lights, and shelving.

Plant assets are normally recorded in an organization's balance sheet at its past expense rate, which includes the initial expense of acquisition, any costs associated with getting the item ready to be functional, and any other expenses related to the asset's current condition. Plant assets often depreciate over time.