Fixed assets are subject to an unusually large amount of record keeping, as well as very specific accounting treatment under the IFRS accounting framework. In addition, given the large expenditures involved in fixed assets and the complexity of the accounting, you can expect a high degree of auditor interest in this area.

Course Key Concepts:

  • Concepts and rules for Property, Plant, and Equipment
  • Revaluation methods under IFRS
  • How to test and account for asset impairment
  • How to calculate the depreciation of fixed assets under IFRS
  • The types of controls needed to avoid the improper acquisition, recording, and disposition of fixed assets
  • Explain the objectives and procedures used by auditors for fixed asset audits
  • Explain when you should capitalize interest, and how to calculate it
  • How to calculate the cost of an asset retirement obligation: retirements and other disposals of long-lived assets
  • Nonmonetary (exchange) transactions
  • Disclosure requirements
  • Financial statement presentation


Learning Objectives
  • Explore the more complex aspects of fixed asset accounting under IFRS
  • Discover how Asset impairments are different in IFRS
  • Recognize when Impairment reversals are necessary
  • Identify Asset retirement obligations
  • Explore Asset revaluation techniques
  • Explore Financial statement and Note presentation
Last updated/reviewed: August 11, 2023
2 Reviews (22 ratings)


Anonymous Author
Today, I took this and another course on Illumeo on property, plant and equipment (PP&E) to genuinely learn more to help me answer questions on PP&E currently being raised by our auditors. While I rated the other course at 5 out of 5, I regrettably felt the need to rate this one at only 1 out of 5 for several reasons. First, 15 of the 55 minutes (and 2 exam questions) were spent on material beyond PP&E: the introduction and an IFRS disclosure checklist, where the disclosures relevant to PP&E were already sufficiently covered in a separate section. Second, I found some many things that could best be described as imprecise or poorly worded (or just plain wrong) that led me to doubt the accuracy of other material that I needed to learn. Some examples of the imprecision, poor wording and/or errors follow: 1. All public companies (SEC filers) must follow IFRS (but SEC filers domiciled in the US can, and maybe still have to, follow US GAAP) 2. Qualitative characteristics presented as if they supersede actual standards (as if IAS 16 allows recording nothing if not "reliable") 3. Assets are recorded at the present value of expected net future benefits (which may apply in an impairment but ignores cost basis) 4. Fixed assets include intangible assets or goodwill (but do not) 5. PP&E initially includes pro rata share of overhead (when only reference to overhead in IAS 16 (paragraph 19) say it is expense) 6. Repairs to maintain the intended use should be capitalized (where example verbally given and IAS 16.13 instead on replaced assets) 7. GAAP requires grouping of assets together for depreciation (but GAAP allows for election of component or composite depreciation) 8. IFRS recommends ignoring residual value (when IAS 16.53 just says may be insignificant and IAS 16.51 says to reassess, not ignore) 9. Leasehold improvements are what must be left behind at the end of a lease (when really broader so life can be shorter than the lease) 10. Test of impairment annually (when IAS 36.8 instead just says to annually consider if need to do test, as no testing if no indicators) 11. PP&E held-for-sale are current assets (when IFRS 5.38 just says non-current assets held-for-sale should be separated, not current) 12. All assets are subject to revaluation (when IAS 2 on inventory does not mention it and not relevant to PP&E even all assets were) I have never rated a course this poorly and I have never provided a comment even close to this. I have only done so to caution others.

Anonymous Author
I enjoyed the course, and I found the information very informative.

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Introduction to The Differences under IFRS in Accounting for Fixed Assets11:07
  Fixed Assets4:42
  Compound Assets2:26
  Residual Value2:00
  Leasehold Improvements1:01
  Revaluation of PPE3:09
  Disclosure Requirements5:04
  Annual Asset Impairment Test Checklist3:01
  IFRS Disclosure Checklist4:15
Continuous Play
  The Differences under IFRS InAccounting for Fixed Assets55:10
Supporting Materials
  Slides: The Differences under IFRS in Accounting for Fixed AssetsPDF
  The Differences under IFRS in Accounting for Fixed Assets Glossary/indexPDF
Review And Test