What are property, plant, and equipment considered in accounting?

Property, plant, and equipment (PP&E) are classified as tangible assets with long useful lives that are utilized in the operation of a business. These assets include items such as buildings, machinery, vehicles, and land. Their primary function is to support the business's operations and production processes over an extended period rather than being held for immediate resale or trading.

PP&E is essential in accounting because they are listed on the balance sheet and are subject to depreciation to reflect the wear and tear or obsolescence over time. This distinction highlights their importance in the ongoing operations of a company rather than viewing them as short-term or liquid investments, which serve different financial purposes.

This understanding aligns with the classification of these assets as long-term, emphasizing their use in generating revenue and supporting the business infrastructure over many years.