Long-lived tangible and intangible assets hold the promise of providing economic benefits to an entity for a period greater than that covered by the current year's financial statements. They are classified may be classified into two basic types: tangible and intangible. The focus of this chapter is on tangible assets. Property, plant and equipment denote tangible assets to be used in the production or supply of goods or services, for rental, or for administrative purposes. There are four concerns to be addressed in accounting for long-lived assets: 1. The amount at which the assets should be recorded initially on acquisition; 2. How value changes subsequent to acquisition should be reflected in the financial statements; 3. The rate at which the amount the assets are recorded should be allocated as an expense to future periods; and 4. The recording of the ultimate disposal of the assets.