The Breaker Times

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

What is Furniture, Fixtures, and Equipment?

An asset will be categorized as FF&E if it is something that a business uses to perform normal, routine, everyday activities. For example, an office receptionist would make use of her desk, chair, telephone, computer, desk organizer, and pen holder to perform normal routine activities commonly associated with the business use of these items.

Accountants categorize FF&E as tangible assets, listing them line-item on financial statements and other budget documents. The FF&E balance is added into the total costs for a project to determine if an initiative has come in over or under budget.

Real-World Example of FF&E Accounting Treatment

Accountants depreciate FF&E items, spreading their acquisition costs over time. To perform this type of calculation requires that the accountant first determines the useful life of an item. This useful life determination is based on IRS guidelines and must be done correctly.

Even though most items of FF&E have useful lives of one year or more, they may be very different from one item to another. For example, while a desktop computer can be considered technologically obsolete in three years, according to the IRS, it has a useful life of five years. On the other hand, the IRS suggests seven-year useful life for office furniture.
Security equipment, such as X-ray scanners, can be considered FF&E since these types of items might conceivably be removed from the premises of a building and set up at another location.

Practical Example of FF&E Depreciation

Suppose, for the sake of argument, that the IRS thinks a new car is worth $10,000 and has a useful life of five years.

Let’s further assume that the vehicle’s maximum salvage value is 20%. When a company first buys the car, it records the monthly depreciation charge as follows :

Depreciation charge at the end of the 1st month: $133.33. Net book value of car at end of one month would be what its original book value was less its accumulated depreciation amount over its useful life. Board of Governors of the Federal Reserve System.

FAQs

Here are the answers to your questions:

### Q1. What is included in furniture, fixtures, and equipment?
Ans: Furniture, fixtures, and equipment (FF&E) includes movable, non-fixed assets that are used in the operation of a business. These items are typically used to enhance the functionality and comfort of a space, but are not permanently attached to the building. Examples of FF&E include:

– Furniture: Chairs, tables, desks, sofas, etc.
– Fixtures: Light fixtures, plumbing fixtures, etc.
– Equipment: Office equipment, kitchen appliances, etc.

FF&E is often used in the hospitality, healthcare, and commercial real estate industries to describe the movable assets that are part of a property’s interior design and functionality.

### Q2. What is the difference between PP&E and FF&E?
Ans: The main difference between Property, Plant, and Equipment (PP&E) and FF&E is the permanence and attachment to the property.

– **PP&E** includes fixed assets that are permanently attached to the property, such as buildings, land, machinery, and vehicles. These assets are not intended to be moved and are an integral part of the property.
– **FF&E** includes movable assets that are used in the operation of a business, such as furniture, fixtures, and equipment. These items are not permanently attached to the property and can be moved or replaced.

In summary, PP&E is for fixed, permanent assets, while FF&E is for movable, non-fixed assets.

### Q3. What is FF&E and OS&E?
Ans: FF&E and OS&E are acronyms used in the hospitality and commercial real estate industries to describe the types of assets included in a property’s interior design and functionality.

– **FF&E** stands for Furniture, Fixtures, and Equipment. It includes movable assets such as furniture, light fixtures, and office equipment.
– **OS&E** stands for Operating Supplies and Equipment. It includes consumable items such as linens, toiletries, and other supplies necessary for the operation of the property.

Both FF&E and OS&E are important components of a property’s overall value and are often included in the budget for maintaining and upgrading the property.

### Q4. What type of account is furniture & fixtures?
Ans: Furniture and fixtures are typically classified as **Current Assets** on a company’s balance sheet. This is because they are movable assets that are used in the operation of the business and are expected to be consumed or sold within a year.

### Q5. What is an example of FF&E?
Ans: An example of FF&E is a set of office furniture, including desks, chairs, and tables. This type of equipment is movable and can be replaced or updated without affecting the structure of the building.

### Q6. Is TV a furniture and fixture?
Ans: No, a TV is not typically considered furniture and fixture. While it can be classified as equipment, it is not usually included in the standard definition of FF&E. FF&E typically refers to items like desks, chairs, tables, and other office furniture.

### Q7. What is included in the FF&E?
Ans: The FF&E typically includes a wide range of movable assets used in the operation of a business. These can include:

– Furniture: Desks, chairs, tables, sofas, etc.
– Fixtures: Light fixtures, plumbing fixtures, etc.
– Equipment: Office equipment, kitchen appliances, etc.
– Decorative items: Curtains, rugs, artwork, etc.

### Q8. What falls under furniture and equipment?
Ans: Furniture and equipment are both part of the FF&E category. Furniture includes items like desks, chairs, and tables, while equipment includes items like office machines, kitchen appliances, and other movable assets.

### Q9. What is the job description of FF&E?
Ans: The job description of FF&E involves managing the procurement, installation, and maintenance of movable assets used in the operation of a business. This includes tasks such as:

– Procuring new FF&E items
– Coordinating installation and setup
– Maintaining and repairing existing FF&E
– Budgeting and planning for FF&E purchases

### Q10. What is the FF&E budget?
Ans: The FF&E budget is a financial plan that outlines the estimated costs for purchasing, installing, and maintaining FF&E items over a specific period. This budget is typically included in the overall budget for a property or business and helps in planning and forecasting expenses related to FF&E.

### Q11. Does FF&E include inventory?
Ans: No, FF&E does not typically include inventory. Inventory refers to goods that are held for sale or in the process of production, whereas FF&E includes movable assets used in the operation of a business.

### Q12. What is the FF&E schedule?
Ans: The FF&E schedule is a detailed list of all the FF&E items included in a property or business. It typically includes information such as the type, quantity, condition, and location of each item. The schedule is used for planning, budgeting, and maintenance purposes.

### Q13. What is furniture equipment?
Ans: Furniture equipment refers to movable assets used in the operation of a business, such as office furniture, kitchen appliances, and other equipment. These items are not permanently attached to the property and can be moved or replaced.

### Q14. What is an example of a fixture?
Ans: An example of a fixture is a light fixture, such as a chandelier or a ceiling light. Fixtures are typically permanently installed in a building and are not intended to be moved.

### Q15. What type of account is furniture and fixtures?
Ans: Furniture and fixtures are typically classified as **Current Assets** on a company’s balance sheet. This is because they are movable assets that are used in the operation of the business and are expected to be consumed or sold within a year.

### Q16. Is furniture and fixtures a fixed asset?
Ans: No, furniture and fixtures are not typically considered fixed assets. Fixed assets are permanent assets that are not intended to be moved, such as buildings, land, and machinery. Furniture and fixtures are movable assets that can be moved or replaced.

### Q17. What is an example of FF and E?
Ans: An example of FF&E is a set of office furniture, including desks, chairs, and tables. This type of equipment is movable and can be replaced or updated without affecting the structure of the building.

### Q18. Is TV a furniture or equipment?
Ans: A TV can be classified as either furniture or equipment, depending on the context. In a residential setting, a TV might be considered furniture. In a commercial setting, such as an office or a hotel, a TV might be considered equipment.

### Q19. What does FF&E include?
Ans: FF&E includes a wide range of movable assets used in the operation of a business. These can include furniture, fixtures, equipment, decorative items, and other items necessary for the operation of the property.

### Q20. Are light fixtures FF&E?
Ans: Yes, light fixtures are typically included in FF&E. Light fixtures are considered fixtures because they are permanently installed in a building and are not intended to be moved.

### Q21. What are FF&E costs?
Ans: FF&E costs refer to the expenses incurred in purchasing, installing, and maintaining FF&E items. These costs can include the initial purchase price, installation fees, and ongoing maintenance and repair expenses.

### Q22. Is a refrigerator a furniture?
Ans: No, a refrigerator is not typically considered furniture. While it is a movable asset, it is more commonly classified as equipment because of its functional purpose.

### Q23. What is furniture, fixtures and fittings?
Ans: Furniture, fixtures, and fittings (FF&F) is a term used in the UK to describe the movable assets used in the operation of a business. It is similar to the term FF&E used in the US and other countries.

### Q24. What is FF&E procurement?
Ans: FF&E procurement refers to the process of acquiring FF&E items for a business or property. This includes tasks such as selecting suppliers, negotiating prices, and coordinating delivery and installation.

### Q25. What does ffe mean?
Ans: FFE stands for Furniture, Fixtures, and Equipment. It is an acronym used in the hospitality, healthcare, and commercial real estate industries to describe the movable assets used in the operation of a property.

### Q26. How many types of furniture are there?
Ans: There are many types of furniture, including but not limited to:

– Office furniture: Desks, chairs, tables, etc.
– Living room furniture: Sofas, armchairs, coffee tables, etc.
– Bedroom furniture: Beds, dressers, nightstands, etc.
– Dining room furniture: Tables, chairs, buffets, etc.

### Q27. What account is furniture and fixtures?
Ans: Furniture and fixtures are typically classified as **Current Assets** on a company’s balance sheet. This is because they are movable assets that are used in the operation of the business and are expected to be consumed or sold within a year.

### Q28. Is furniture and fixture a fixed assets?
Ans: No, furniture and fixtures are not typically considered fixed assets. Fixed assets are permanent assets that are not intended to be moved, such as buildings, land, and machinery. Furniture and fixtures are movable assets that can be moved or replaced.

### Q29. How is FF&E calculated?
Ans: FF&E is typically calculated by adding up the costs of all the FF&E items included in a property or business. This can include the initial purchase price, installation fees, and ongoing maintenance and repair expenses.

### Q30. Is a TV considered FF&E?
Ans: A TV can be considered FF&E depending on the context. In a commercial setting, such as an office or a hotel, a TV might be considered equipment. In a residential setting, a TV might be considered furniture.

### Q31. What is not included in FF&E?
Ans: Items not typically included in FF&E are:

– Inventory: Goods held for sale or in the process of production.
– Fixed assets: Permanent assets like buildings, land, and machinery.
– Landscaping: Outdoor features like gardens, trees, and lawns.

### Q32. What is an FF&E list?
Ans: An FF&E list is a detailed inventory of all the FF&E items included in a property or business. It typically includes information such as the type, quantity, condition, and location of each item.

### Q33. What is a FF&E package?
Ans: A FF&E package is a collection of FF&E items that are bundled together for a specific project or property. This can include a set of furniture, fixtures, and equipment that are designed to work together to create a specific look or function.

### Q34. What are FF&E specifications?
Ans: FF&E specifications refer to the detailed requirements for FF&E items, including their type, quantity, quality, and other specific details. These specifications help in ensuring that the correct items are procured and installed to meet the needs of the property or business.

### Q35. Does FF&E include appliances?
Ans: Yes, FF&E can include appliances such as kitchen appliances, office equipment, and other movable assets used in the operation of a business.

### Q36. Does FF&E include lighting?
Ans: Yes, FF&E can include lighting fixtures such as chandeliers, ceiling lights, and other lighting installations.

### Q37. What is considered furniture, fixtures, and equipment?
Ans: Furniture, fixtures, and equipment (FF&E) includes movable assets used in the operation of a business. These can include furniture, fixtures, equipment, decorative items, and other items necessary for the operation of the property.

### Q38. How much does FF&E cost?
Ans: The cost of FF&E can vary widely depending on the type and quantity of items included. It can range from a few thousand dollars for a small office to millions of dollars for a large hotel or commercial property.

### Q39. Is a toilet considered FF&E?
Ans: Yes, a toilet is typically considered a fixture and is included in FF&E. Fixtures are permanent installations in a building and are not intended to be moved.

### Q40. What is full FF&E?
Ans: Full FF&E refers to the complete set of FF&E items included in a property or business. This can include all the furniture, fixtures, equipment, and other movable assets used in the operation of the property.

### Q41. What is FF&E and OS&E?
Ans: FF&E and OS&E are acronyms used in the hospitality and commercial real estate industries to describe the types of assets included in a property’s interior design and functionality.

– **FF&E** stands for Furniture, Fixtures, and Equipment.
– **OS&E** stands for Operating Supplies and Equipment.

Both FF&E and OS&E are important components of a property’s overall value and are often included in the budget for maintaining and upgrading the property.

### Q42. What is an example of FF&E?
Ans: An example of FF&E is a set of office furniture, including desks, chairs, and tables. This type of equipment is movable and can be replaced or updated without affecting the structure of the building.

### Q43. What is the purpose of FFE?
Ans: The purpose of FF&E is to provide a comfortable and functional environment for the occupants of a property. FF&E includes movable assets such as furniture, fixtures, and equipment that are used in the operation of a business.

### Q44. What is FF&E specification?
Ans: FF&E specification refers to the detailed requirements for FF&E items, including their type, quantity, quality, and other specific details. These specifications help in ensuring that the correct items are procured and installed to meet the needs of the property or business.

### Q45. What is FF&E coverage?
Ans: FF&E coverage refers to the extent to which FF&E items are included in a property or business. It can include the full range of FF&E items or a specific subset, depending on the needs and requirements of the property.

In summary, FF&E includes a wide range of movable assets used in the operation of a business, and it is an important component of a property’s overall value and functionality.