PP&E

Business & Finance abbreviation · Accounting

PP&E
Stands forProperty, plant and equipment
CategoriesBusiness & Finance

PP&E stands for Property, plant and equipment, an accounting abbreviation.

Long-term tangible assets used in operations rather than held for sale, such as land, buildings, machinery, vehicles, computers and furniture. PP&E is recorded at cost on the balance sheet and, except for land, depreciated over its useful life.

Example: Net PP&E rose to $4.6 billion after the company completed its new distribution center.

Usage notes

Also called fixed assets. "Gross PP&E" is original cost; "net PP&E" deducts accumulated depreciation and impairment. Under IFRS (IAS 16), companies may revalue PP&E to fair value, while US GAAP generally requires historical cost. Spending on PP&E is capital expenditure.

More accounting abbreviations

  • OCI – Other comprehensive income
  • P&L – Profit and loss statement
  • PAT – Profit after tax
  • PBT – Profit before tax
  • PCAOB – Public Company Accounting Oversight Board
  • PO – Purchase order
  • PPA – Purchase price allocation
  • PY – Prior year
  • Q1 – First quarter
  • Q2 – Second quarter
  • Q3 – Third quarter
  • Q4 – Fourth quarter

See all 95 accounting abbreviations →

Edited by the AbbreviationList.com team. Spotted an error or a missing meaning? Contact us.