Question

What is PP&E, and is intellectual property included in the "property section? Explain. Please answer in your own words, do not use the outside resources.

Answer 1

Property , Plant, equipment (PPE):-

Which is in general, all physical fixed assets having useful life of more than one year can be treated as under this section of PPE., for accounting purposes all the assets tangible in nature could be form part of this section of fixed assets., but not intangible assets like copy rights, parents, trade marks etc.

Intellectual property;-

-which can be treated as intangible in nature, which we can't see in physical form, but adding value to the company.

-Hence some of these treated as capital assets, accounting treatment of these quite different from usual property treatment,

-in these intellectual property some of the ideas and secrets could not be possible to measure hence not recorded under assets,

-some of them like parents, copyright, and trademarks can be treated as capital asset, and valued at cost or less than cost, as for these intellectual property it is difficult to fix market price until and unless someone ready to purchase and valued it.,

-but intellectual property does not included in property as.,

#It is included all the Stated intangible assets (other than Goodwill) below;

-copy rights,

-parents,

-Trade marks,

-trade secrets,

#And some of the capital assets are

-human capital,

-know-how

-and industrial knowledge.