Property, plant, and equipment (PP&E) are non-current, tangible assets shown on most businesses' balance sheets. PP&E items play a crucial part in entities' operations because they are an essential resource for producing goods, supplying services, and generating revenues. The accurate measurement of PP&E items allows entities to fairly reflect their financial position and profitability; hence, they can assure current stakeholders, attract new investors, plan and analyze entities' operations, and manage their assets efficiently. Nowadays, the importance of accurately measuring PP&E items' value is even more vital for decision-makers due to the global economic threats and uncertainties caused by the COVID-19 pandemic and the other political instabilities.

This course explains and illustrates the PP&E items recognition and measurement process step-by-step, including initial recognition, subsequent measurement, depreciation methods, impairment test, fair value measurement, valuation techniques, revaluation model under IFRS, disposals, change in use, and measuring PP&E efficiency.

This course depends on practical cases and examples that simplify the theory behind the US GAAP standard ASC 360 Property, Plant, and Equipment and the IFRS standard IAS 16 Property, Plant, and Equipment and point out the main differences between them.

Course Key Concepts: Fixed assets, Property, Plant, Equipment, Impairment, Fair value measurement, ASC 360, IAS 16, Valuation, Revaluation model, Depreciation.

Learning Objectives
  • Discover and distinguish between property, plant, and equipment (PP&E) items and other types of assets.
  • Identify and measure and record the carrying value of PP&E items.
  • Explore the impairment test.
  • Recognize and measure the fair value of PP&E items under ASC 360 and IAS 16.
  • Explore and measure the efficiency of PP&E items.
Last updated/reviewed: August 14, 2023
16 Reviews (62 ratings)

Reviews

5
Member's Profile
This course provided excellent information and examples on PP&E valuation, depreciation, impairment, and fair value. The presenter broke it down so that it was easily understood, and I thought the problems he went through and the real-life examples of financial statements and disclosures really contributed to understanding the concepts. This is one of the best Illumeo courses I have taken, and the instructor did a great job. Highly recommend.

5
Anonymous Author
This was a great course, there aren't too many courses strictly on PP&E so was very useful. The course went over calculating costs of assets, the different depreciation methods, impairment tests, etc.

5
Member's Profile
I thought this was a very informative class and the materials and charts were put together very well. The samples and calculations also helped me better understand the concepts.

5
Anonymous Author
This was a very interesting and informative course. The instructor presented the information very well and the steps were easy to follow. I would recommend this course to others.

5
Member's Profile
A good course. At first I thought the material may have been to basic, but I got a lot of good takeaways from the class. Especially on impairment. Good job Moatz !

5
Anonymous Author
The instructors provides plenty of relevant guidance on accounting for property, plant and equipment (PPE) in a very concise and interesting manner.

5
Member's Profile
Good course on PP&E, and probably more advanced for most if your day to day activities aren't focused on PP&E.

5
Anonymous Author
The course was very detailed and a lot of information was presented. A good refresher for fixed assets.

5
Anonymous Author
This course provided good real world examples and included the difference between IFRS and GAAP.

5
Member's Profile
Great overview of the topic from GAAP and IFRS prospective. Examples were very helpful.

5
Member's Profile
PP&E Review. Slide deck is impressive. Plenty of examples provided by the instructor.

5
Member's Profile
It was great experience to understand IFRS PP&E treatment on revaluation method!

5
Anonymous Author
The instructor gave great examples and was very thorough in covering the topic.

5
Anonymous Author
This course was detailed and helpful on the subject of inventory.

5
Member's Profile
Material is very helpful and easy to follow. It's a great course.

5
Member's Profile
Presented the concepts using really easy to understand approach

Prerequisites
Course Complexity: Foundational

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 AND OVERVIEW
  Introduction to Measuring Property, Plant, and Equipment3:14
RECOGNITION OF PROPERTY,PLANT AND EQUIPMENT
  Initial Recognition13:04
  Subsequent Expenditures3:47
  Depreciation Methods9:55
  Selection of Depreciation Methods3:14
MEASURING STEPS OF PROPERTY, PLANT AND EQUIPMENT
  Indicators of Impairment5:00
  Impairment Test8:11
  Estimated Cash Flows7:11
  Definition and Measurement of Fair Value5:43
  Valuation Techniques3:39
  Inputs to Valuation Techniques5:34
  Revaluation Model Under IFRS10:51
  Derecognition4:07
  Disclosure5:13
  Measuring P, P and E Efficiency4:41
CONTINUOUS PLAY
  Measuring Property, Plant, and Equipment1:33:24
SUPPORTING MATERIAL
  Slides: Measuring Property, Plant, and EquipmentPDF
  Measuring Property, Plant, and Equipment Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam