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What is Furniture, Fixtures, and Equipment FF&E?

Developments in the sphere of craftsmanship and mechanical techniques, during the past 200 years or so, have made furniture production both cheaper and quicker. Using timber as a basis and applying techniques such as shredding, heating and glueing, it has been possible to evolve new materials. To an increasing extent, cabinetmakers and furniture factories are using semi-manufactured wood such as veneer, carcass wood, plywood, laminated board, and hardboard (fibreboard). OS&E includes all of the necessary supplies and equipment needed to keep a business running on a day-to-day basis. This would include items such as office supplies, janitorial supplies, and computer equipment. Any intangible assets purchased that might stay with the company if it’s acquired.

Metals have been used since antiquity for making and ornamenting furniture. Splendid Egyptian pieces, such as the thrones and stool that were found in the tomb of the youthful Tutankhamen (14th century bce), were rich in gold mounts (decorative details). In ancient Greece, bronze, iron, and silver were used for making furniture. Finds that were buried in the ashes of Pompeii and Herculaneum in Italy included tables with folding underframes and beds made partly or entirely of metal. Veneering is done on carcass wood, either in the form of a solid surface or a surface composed of several layers glued together. Old furniture is nearly always veneered on solid wood of an inferior quality to the veneer, such as beech, oak, or deal.

For example, while a desktop computer may be deemed technologically outdated after three years, according to the IRS, it has a useful life of five years. On the contrary, the IRS assigns office furniture a useful life of seven years. These items are sometimes referred to as furniture, fixtures, and accessories (FF&A). This information is educational, and is not an offer to sell or a solicitation of an offer to buy any security. This information is not a recommendation to buy, hold, or sell an investment or financial product, or take any action. This information is neither individualized nor a research report, and must not serve as the basis for any investment decision.

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  • The assets are depreciated using the straight-line method, typically for a period of 10 years, and are all classified as long-term assets on the company’s balance sheet.
  • Accountants refer to FF&E as long-term tangible assets (assets that last more than a year, which you can physically touch) that they value on a company’s balance sheet and use for tax purposes.
  • The balance in this account can be comparatively large for a business that is mostly administrative in nature, such as an insurance company.
  • At the same time, you don’t want to pass up on any deductions that you’re legally entitled to.

All investments involve risk, including the possible loss of capital. Past performance does not guarantee future results or returns. Before making decisions with legal, tax, or accounting effects, you should consult appropriate professionals. Information is from sources deemed reliable on the date of publication, but Robinhood does not guarantee its accuracy. Raw materials and assets used in R&D of new products should be in FF&E. You’ll need to account for every item of furniture in your accounting.

What are Furniture and Fixtures?

The Continental terms describe the intrinsic character of furniture better than the English word. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on In some cases, the net present value of their cost using the company’s cost of capital as a discount rate. Although FF&E items typically have useful lives of one year or more, they may vary substantially, from one item to the next.

When valuing a company it is important to consider FFE as they may depreciate substantially. Before you figure out how to depreciate your FF&E assets, you need to know what types of items you can include. The last thing you want to do is overvalue your FF&E and get in trouble with the IRS. At the same time, you don’t want to pass up on any deductions that you’re legally entitled to.


Whether a company uses its purchasing department or outsources the purchasing of FF&E, it needs to describe the types of items it intends to acquire in detail. Furniture includes more substantial items such as movable office furniture. Fixtures are anything that may be secured, such as cubicle partitions or attached shelving, that have no permanent connection to the structure or building. He is asked to prepare a list with all the furniture, fixtures, and equipment assets and calculate their cost to the company.

fixture American Dictionary

Chairs are always for sitting in, but some are more comfortable or highly ornamented than others. Accessory furnishings are smaller subsidiary items such as clocks, mirrors, tapestries, fireplaces, panelling, and other items complementary to an interior scheme. Long-term assets that are reported under the classification of property, plant, and equipment on a company’s balance sheet. FF&E is important because it represents a significant portion of a company’s assets. Tracking and managing FF&E can help a company save money and make more informed decisions about its physical assets. Furniture, fixtures, and equipment (FF&E) is not a one-size-fits-all accounting category.

fixture noun

Because they tend to go obsolete, computers depreciate very quickly, over a five-year timespan. An office building, on the other hand, depreciates much less over five years. In most commercial real estate situations, some FF&E is owned by the property owner, and some is owned by the tenant. For example, in an office building, it would be perfectly normal for the tenant to provide their own desks and chairs. Any intangible assets, such as patents or copyrights, should be in FF&E.

What Is FF&E?

These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘fixture.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. This is important because you might be foregoing FF&E deductions that could save your company a significant amount of taxes. Certain factory equipment might also relate to this type of business equipment.

Identifying all types of furniture will give you more accurate figures. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Because the useful lifespan is seven years, an accountant would deduct $5,143 from the value of the server each year for seven years on the balance sheet, until reaching the salvage value. Once the server equals the salvage value, it stays at that value on the balance sheet until it is discarded or sold. Generally, if an item is essential to a business’s operations, and you can carry it out of a building when you leave, it’s most likely FF&E. Raw materials and manufacturing tools used throughout the life of the product, not when it’s manufactured, should be in FF&E.

The assets are depreciated using the straight-line method, typically for a period of 10 years, and are all classified as long-term assets on the company’s balance sheet. If it’s something that’s used in day-to-day business operations but is not of significant value, it’s not included in FF&E. FF&E specifications are thorough descriptions of each item of furniture, fixture, or piece of equipment that a business wants to purchase.

So when you hear someone talk about different furniture, fixtures, and equipment, what does it actually mean? Keep reading to learn more about what furniture, fixtures, and equipment are in business. We’ll cover the different types, why it’s important, and what doesn’t count.

An FF&E procurement company could coordinate purchases, delivery, and installation to coincide with the hotel’s opening schedule. Large corporations and public agencies often outsource FF&E purchasing because it’s easier and more efficient than doing it themselves. Furniture, Fixtures, and Equipment (FF&E) is business property not permanently connected to a building such as office furniture, partitions, and business equipment used in the operations of a company.

Depreciation is a way to extend the value of a fixed asset over time so that a fixed asset’s expense matches the revenue it helps to generate in a given accounting period. As an accounting term, FF&E items are combined on a separate line item under tangible assets on a company’s balance sheet to quantify their value. Something is “tangible” if it has a physical form, and you can touch it.

Metal, however, is still employed primarily for locks, mounts, and hinges used on furniture or for purely ornamental purposes. In the Middle Ages, simply constructed chests demanded extensive use of iron bands to provide extra strength, and the ends of these bands were cut to form decorative shapes. Cabinets of the Renaissance and Baroque periods were decorated with mounts of pewter or bronze. FF&E items lose their book value over time in a process called depreciation.

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