Buying and Selling Property, Plant, and Equipment (PP&E)
In This Chapter
Getting familiar with different types of tangible assets
Assigning costs to the balance sheet
Determining the cost of self-constructed assets
Preparing the asset section of a balance sheet
Placing a value on PP&E
Getting rid of old PP&E
Now that you’ve read about current assets, it’s time to move on to noncurrent assets, which are assets with a life of more than one year. Your biggie noncurrent assets are tangible and intangible assets. This chapter talks about tangible assets, which you can touch and feel — they have a physical presence.
Tangible assets, also called fixed assets, include property, plant, and equipment (PP&E). I cover intangible assets, which lack a physical presence such as patents, in Chapter 13.
Companies don’t always acquire tangible assets just using cash or credit — they also ...