If you ever need to add a favicon (little icon in the browser bar on a website and also saved with favorites in browsers) and you want to use a png, it needs to be in the following format to work on all browsers.
<link rel="icon" type="image/png" href="/layout_images/favicon.png" />
If you do not care about using a .png file and are just using a standard .ico file for the favicon then you can just save the favicon file in the root directory of the website and that is all you have to do. Enjoy