Because a great deal of plant and machinery is mobile its value can be determined after taking into account its location. Some plant and equipment can be so remote that the cost of bringing to a potential buyer is more than what the plant and equipment is worth. This applies particularly to large and heavy plant and equipment.

Some plant and equipment is normally sold with the premises in which it is located. This would apply to the highly specialised buildings covered above. The sale of such a building would necessarily, include the plant and equipment. Some plant and equipment cannot be removed at a reasonable cost to make its sale economical.


The removal of a large baker’s oven may result in expensive damage to the building. The underground petrol tanks of a service station are often filled with sand rather than incur the expense of removing them when the service station use becomes uneconomical.

Once obsolete the value is scrap value which in some cases may be quite high particularly if the item can be dismantled. Parts are cheaper and easy to transport and may have value as replacement parts for operating plant and machinery.