Plant and equipment v. other assets

Plant assets differ from other assets of the firm:

• The primary difference between plant assets and inventory is that plant assets are held to be used in operations, whereas inventory is held to be sold.
• The primary difference between plant assets and current assets in general is their useful lives.
• The primary difference between plant assets and long-term investments is that plant assets are used in the operations of the business.

The cost of plant assets includes all expenditures that are necessary to acquire the assets and get them ready for use.