Plant and Machinery Definition | Law Insider (2024)

FAQs

Plant and Machinery Definition | Law Insider? ›

Plant and Machinery means apparatus, equipment, machinery, pipelines, telecommunication tower fixed to earth by foundation or structural support that are used for making outward supply and includes such foundation and structural supports but excludes land, building or any other civil structures.

Examples. Assets that can often be classed as 'plant and machinery' are equipment like computers, office furniture, tools, machinery, etc, i.e. items that you use to keep your business running. This could also include: The costs associated with demolishing plant and machinery equipment.

Equipment means the Contractor's equipment, consumables, plant, materials and such other items supplied and used by the Contractor in the performance of its obligations under the Contract.

Plant includes machinery, equipment, appliances, containers, implements and tools and components or anything fitted or connected to those things. Some examples of plant include lifts, cranes, computers, machinery, scaffolding components, conveyors, forklifts, augers, vehicles, power tools and amusem*nt devices.

Plant and machinery are the equipment and assets businesses use in various industries for manufacturing, production, and other operational processes. These assets range from heavy machinery like manufacturing equipment, forklifts, and conveyor belts to smaller tools and equipment used in daily operations.

Property, plant, and equipment (PP&E) are long-term assets vital to business operations and the long-term financial health of a company. Equipment, machinery, buildings, and vehicles are all types of PP&E assets.

Taken from the latin 'plantare', it originally means 'to fix in place' or to 'drive into the ground'. The idea here is that plant machinery is considered a fixed asset. This term seems to have come up first around the 1789, describing the idea that a building is planted in its location.

EQUIPMENT Definition & Legal Meaning

Tools, be they devices, machines, or vehicles. Assist a person in achieving an action beyond the normal capabilities of a human. Tangible property that is not land or buildings, but facilitates business operations.

Equipment means tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes, or $5,000.

Legal Definition

equipment. noun. equip·​ment. : the implements used in an operation or activity. specifically, in the Uniform Commercial Code : goods that are not inventory, farm products, or consumer goods.

What is the difference between plant and machinery and equipment? ›

The difference between plant and machinery is that generally machinery will have moving working parts, and plant will not (though computers and similar electronic devices are considered to be machinery, despite have no moving parts). The working parts of a machine are also considered to be machinery.

Plant machinery is primarily designed for heavy-duty and specialized industrial operations. It is specifically tailored to perform complex tasks involved in manufacturing, processing, and construction. Equipment, on the other hand, serves a more general purpose, catering to a wide array of industries and tasks.

Answer and Explanation:

Computers are usually utilized for the administrative operations. It is not classified as Property, Plant, and Equipment.

Auditor should see that the entire plant and machinery stands in the name of the client and are free from any charge or encumbrances. If plant and machinery is mortgaged, then he has to verify that the documents are properly executed and mention of mortgage is made in the Balance Sheet.

Fixed Assets:

For example, land and building, plant and machinery, vehicles, equipment, patents, trademarks etc, are examples of Fixed Assets.

No, property, plants, and equipment, also called PP&E, are not current assets. Current assets are any assets that will provide an economic benefit for or within one year. PP&E are expected to have a useful life significantly longer than a single year. As such, they are considered to be fixed assets.

These include: cranes, elevating work platforms, excavators, forklifts, drills and saws. As a person conducting a business or undertaking (PCBU), you have specific duties to: Manage the risks associated with plant by ensuring certain plant and machinery are safe to operate; Register plant if required.

: machines in general or as a functioning unit. b. : the working parts of a machine. 2. : the means or system by which something is kept in action or a desired result is obtained.

Plant includes any vehicle, machinery, equipment, tool, vessel and/or aircraft etc.