The fixed assets section of the balance sheet is one of the easiest sections to read and understand. This article is written to describe and illustrate some simple examples of the fixed assets section.
Property Plant & Equipment
Property, plant and equipment are a group of fixed assets commonly seen with manufacturing based balance sheets. In effect, the ‘Fixed Assets’ section will have this line as a summation of the associated cost tied to purchase the land, construct the facility and install the associated manufacturing line of equipment including the warehouse items.