Property, plant, and equipment (fixed assets or operating assets) compose more than one-half of total assets in many corporations. These resources are necessary for the companies to operate and ultimately make a profit. It is the efficient use of these resources that in many cases determines the amount of profit corporations will earn. Accountants employed by a company are deeply involved in nearly all decisions regarding the company's fixed assets, from pre-acquisition planning to the ultimate disposal or sale of those assets. Companies do not view an asset acquisition as merely a purchase, but as an investment. For example, should your company or client purchase an airplane to visit clients? Accountants will investigate all the benefits, both financial and intangible, and compare these benefits to the costs. By determining whether or not the airplane will be a good investment for the company, the accountant can assist the company in making sound strategic business decisions.


Since these assets are so closely related to profits, good management is required. In accounting terms, a good return on operating assets is crucial to the success of the corporation. Many corporations have a staff of accountants whose primary task is to manage operating assets. This task involves making decisions concerning the purchase, use, and disposal of said assets. Once an asset has been acquired, accountants are responsible for determining the original value of the asset, the period over which it will extend benefits to the company, and its current market value while owned by the entity. The accountant must ultimately determine when and how to dispose of such an asset. The decision can range from trading the asset for a new asset to selling the asset to a salvage dealer. 

Recently, The Williams Companies, Inc. had over USD 10 billion dollars in property, plant, and equipment. In addition, the company also had approximately USD 530 million in commitments for construction and acquisition of property, plant, and equipment. Managing a portfolio of assets of this magnitude takes both accounting knowledge and analytical skills. Successful management of these assets can be financially rewarding to both the company and the accountant. On a classified balance sheet, the asset section contains: (1) current assets; (2) property, plant, and equipment; and (3) other categories such as intangible assets and long-term investments. Previous chapters discussed current assets. This chapter begins a discussion of property, plant, and equipment that is concluded in Chapter 11. Property, plant, and equipment are often called plant and equipment or simply plant assets. Plant assets are long-lived assets because they are expected to last for more than one year. Long-lived assets consist of tangible assets and intangible assets. Tangible assets have physical characteristics that we can see and touch; they include plant assets such as buildings and furniture, and natural resources such as gas and oil. Intangible assets have no physical characteristics that we can see and touch but represent exclusive privileges and rights to their owners.


Modifié le: mardi 28 mai 2019, 12:13