Furniture, fixtures, and equipment refers to movable furniture, fixtures, or other equipment that have no permanent connection to the structure of a building. These items, which include desks, chairs, computers, electronic equipment, tables, bookcases, and partitions, typically depreciate substantially over their long-term use but are nevertheless important costs to consider when valuing a company, especially during liquidation events.

KEY TAKEAWAYS

• Furniture and equipment are items that are not permanently affixed to a building and are consequently easily removable from their respective locations.
• For accounting purposes, each furniture and equipment item has a different useful life, according to IRS guidelines.
• Companies account for wear and tear of furniture and equipment items by depreciating their values over their useful lives.