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Furniture, Fixtures, and Equipment (FF&E)

File Photo: Furniture, Fixtures, and Equipment (FF&E)
File Photo: Furniture, Fixtures, and Equipment (FF&E) File Photo: Furniture, Fixtures, and Equipment (FF&E)

FF&E includes furniture, fixtures, and equipment.

A building’s structure does not permanently attach furniture, fixtures, and equipment (FF&E or FFE). Desks, seats, computers, electronic equipment, tables, bookshelves, and partitions deteriorate with time yet are crucial for valuing a firm, especially during liquidation.

Some call these furnishings, fixtures, and accessories.

Explaining Furniture, Fixtures, and Equipment

A firm uses an asset for routine everyday operations, making it FF&E. An office receptionist uses their desk, chair, telephone, computer, desk organizer, and pen holder for daily tasks.

To classify FF&E as physical assets, accountants use distinct line items on financial statements and planning papers. Add the FF&E balance to a project’s overall expenses to see if it stays under budget.

Actual FF&E Accounting Treatment

Accountants amortize FF&E purchase expenses by depreciating their values over time. To do this, accountants must accurately calculate the useful life of each item according to IRS criteria.

FF&E goods ordinarily last one year or more, but their lifespans vary greatly. According to the IRS, a desktop computer is technologically obsolete after three years but functional for five. The IRS estimates office furniture’s helpful life at seven years.

Due to its portability, security equipment like X-ray scanners may be termed FF&E.

Real-World FF&E Depreciation

As per the IRS, consider a $10,000 new automobile with a five-year useful life. Assume the vehicle’s maximum salvage value is 20%. A corporation records the monthly depreciation fee when it buys a car:

The first-month depreciation is $133.33. The car’s net book value is the difference between its initial book value and its cumulative depreciation during its useful life.


  • The furniture, fixtures, and equipment (FF&E) in a building are easily detachable.
  • IRS standards assign varying useful lives to FF&E items for accounting purposes.
  • Companies depreciate FF&E throughout their valuable lifetimes to account for wear and tear.

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