Machinery, Equipment, Furniture and Fixtures Definition

Real property refers to land or buildings owned by a business. FF&E includes all of the movable furniture, electronic equipment, paper products, and other physical items used in a business. To begin with, FF&E cannot include any items that are part of the building. So while a faucet or light fixture is considered a fixture in ordinary parlance, these types of fixtures are not considered to be FF&E.

  • Metals have been used since antiquity for making and ornamenting furniture.
  • The board is therefore thick enough to be suitable for table tops or doors.
  • This is a commonly-used fixed asset classification that is categorized as a long-term asset on an organization’s balance sheet.
  • All investments involve risk, including the possible loss of capital.
  • This information is not a recommendation to buy, hold, or sell an investment or financial product, or take any action.

FF&E purchasing, also known as FF&E procurement, is when a business furnishes and equips its business space. The business owner of a small business might purchase FF&E without assistance. But larger companies and public agencies tend to hire FF&E procurement agencies, interior designers, furniture dealers, or architects for FF&E selection or buying services. For example, a bookshelf might be secured to a wall to prevent it from toppling over, but its removal won’t damage the building structure. A faucet or toilet, however, would be considered a part of the building or premises itself and would not qualify as a fixture in terms of FF&E. The overall definition of FF&E is that if you remove it, it won’t damage the permanent structures and fixtures of a building.

Manufacturing tools that are only used once and then replaced should be as a “one-time expense” on the income statement, not the Balance Sheet. Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies.

Furniture, fixtures and equipment (accounting)

What you need to know about it depends on the type of business you’re operating and the financial reporting needs of your company. Furniture, fixtures, and equipment (or FF&E) (sometimes Furniture, furnishings, and equipment[1][2]) is an accounting term used in valuing, selling, or liquidating a company or a building. Accountants spread the acquisition costs of FF&E items over time by steadily depreciating their values over their lives.

  • This is because FF&E items depreciate differently from real estate and other property types.
  • Furniture, household equipment, usually made of wood, metal, plastics, marble, glass, fabrics, or related materials and having a variety of different purposes.
  • This is because FF&E items depreciate differently than other real estate-related assets, which in turn impacts how you do your accounting and report your finances for tax purposes.
  • It includes movable furniture and furniture that may be fixed to a wall, like a bookshelf, but that won’t damage the structure of a building if removed.

There are two main reasons why it’s important to understand and track FF&E properly. First, it allows you to report accurate financial statements. Read on to find out if you need more information about FF&E as it relates to your business. There are benefits to knowing how this financial category affects your balance sheet and income statement.

What are FF&E specifications?

My Accounting Course  is a world-class educational resource developed by experts to simplify accounting, finance, & investment analysis topics, so students and professionals can learn and propel their careers. Leasing FF&E can be a good option for businesses that do not have the capital to purchase FF&E outright. It can also allow businesses to upgrade their FF&E more frequently than if they. A franchise is a type of business model where one party pays a fee to do business under another party’s business name and processes.

furniture and fixtures definition

High-quality English mahogany furniture made in the 18th century, however, was veneered with mahogany on mahogany. In the 20th century, machine-made laminated board of various thicknesses was generally used. The advantage of ready-made laminated board is that it does not shrink.


Equipment can refer to anything tangible a business uses for its operations such as computers, audiovisual equipment, phones, copy machines, wiring and devices, and any other industry-specific equipment. During the 18th and 19th centuries, iron furniture became a typical industrial product. Because they could be easily folded up, they were much in demand as camp beds; one used by Napoleon at St. Helena is a famous example. As ordinary beds in private homes or hotels, they could be decorated with brass ornaments such as big knobs screwed onto their posts.

Italian craftsmen have made glass furniture; that is, wooden furniture covered with silvered glass in various colours. Ivory and other forms of bone were used as inlay material in Egyptian furniture. During the 17th and 18th centuries, ivory was widely used for inlay work in cupboard doors and table tops and expensive Continental furniture. The practice of veneering furniture has been known since the time of pharaonic Egypt, but it was not fully exploited until the beginning of the 18th century. During the Rococo period, especially, great virtuosity was displayed by the craftsman in the veneering of curving, concave, and convex surfaces; for instance, as found on chests of drawers. To understand how significant the difference is, consider the difference between computers and real estate.

Examples of Machinery, Equipment, Furniture and Fixtures in a sentence

As long as you keep the basic principles in mind, it’s usually easy to determine whether or not an asset is FF&E. Keeping inventory of your FF&E assets is an important practice for your real estate investing business. This is because FF&E items depreciate differently than other real estate-related assets, which in turn impacts how you do your accounting and report your finances for tax purposes. It’s helpful if you have an accountant on your team who can help you keep track of your FF&E values and depreciation schedules.

Colours range from white, yellow, green, red, brown, gray to black through countless intermediary tones. By juxtaposing wood of different colours, extremely rich effects have been achieved, especially in the 17th and 18th centuries. Wood, if stored under favourable conditions, is durable, and pieces of furniture from the oldest civilizations—Egypt, for example—are still extant. Furniture, household equipment, usually made of wood, metal, plastics, marble, glass, fabrics, or related materials and having a variety of different purposes. Furniture ranges widely from the simple pine chest or stick-back country chair to the most elaborate marquetry work cabinet or gilded console table. The functional and decorative aspects of furniture have been emphasized more or less throughout history according to economics and fashion.

But to accomplish this, accountants must first correctly determine the useful life of each item, based on IRS guidelines. In Victorian England, papier-mâché (a molding material made of paper pulped with glue and other additives) was used to make such items of furniture as fire screens, small tables and chairs, and clock cases. Finally, since World War II, various plastic materials have been used quite extensively in the construction of chairs with seats and backs molded in one piece and provided with a metal base. Various examples of silver furniture have been preserved; not solid metal, they consist of embossed (decorated with relief) or chased (hammered) plates of silver fastened to a wooden core.

More meanings of fixture

Silver furniture was made for palaces in the days when monarchs amassed enormous wealth. In times of war, the silver mountings were melted down and turned into silver coins; it was thus that all the silver furniture disappeared from the royal palaces of France. If laminated board consists only of single sheets of veneer glued together, it is known as plywood. Plywood is widely used in the manufacture of furniture, particularly as backing for chests and other storage pieces, for the bottoms of drawers, and for shelves. FFE stands for Furniture, Fixtures, or other Equipment that has no permanent connection to the structure of the building. It is an accounting term used in valuing, selling, or liquidating a company or building.