Accounting for Property, Plant, and Equipment

Highlights

Introduction, Initial Measurement, Measurement Subsequent to Initial Recognition, Disposal of PPE, Other Issues – Change in Accounting Estimate and Error Correction in Relation to PPE, Other Issues – Asset Retirement Obligation, Other Issues – Depletion, Other Issues – Exchanges of PPE (Nonmonetary Assets), Other Issues – Property Dividends, Other Issues – Financial Statement Disclosures

Prerequisites

None

Objectives

After completing this course, you will be able to (1) account for the initial costs of property, plant, and equipment (PPE); (2) determine the assets qualifying for interest capitalization and calculate the amount of interest cost to be capitalized; (3) distinguish between subsequent expenditures for PPE that should be capitalized and those that should be expensed as incurred; (4) apply the straight-line depreciation method for allocation of the historical cost of PPE; (5) determine when an item of PPE should be tested for impairment and calculate the impairment loss; (6) account for an exchange of nonmonetary assets and for property dividends; (7) calculate periodic depletion; (8) account for changes in accounting estimates and error corrections in relation to PPE; and (9) recognize the main differences between U.S. GAAP and IFRS in relation to PPE.