A category of tangible items/ tangible assets that an entity holds for the purpose of using them in the production process or supply of goods/ services (e.g., machinery, tools, etc.), for rental to others (vehicles, machinery, buildings, etc.) or for its own use (administrative use: such as office equipment, furniture, buildings, etc.)

By nature, property, plant and equipment (PPE or PP&E) are physical and mostly long-term, and hence are expected to be used over the span of more than one period. These items remain on an entity’s balance sheet, period to period. Over time, an entity reduces the book value/ carrying amount of these assets by creating a non-cash item (depreciation). Other examples include land and real estate holdings.