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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: June 12, 2021

4 Reviews (12 ratings)Reviews

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
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
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
Great overview of the topic from GAAP and IFRS prospective. Examples were very helpful.

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 .
Course Syllabus
INTRODUCTION AND OVERVIEW
  3:14Introduction to Measuring Property, Plant, and Equipment
RECOGNITION OF PROPERTY,PLANT AND EQUIPMENT
  13:04Initial Recognition
  3:47Subsequent Expenditures
  9:55Depreciation Methods
  3:14Selection of Depreciation Methods
MEASURING STEPS OF PROPERTY, PLANT AND EQUIPMENT
  5:00Indicators of Impairment
  8:11Impairment Test
  7:11Estimated Cash Flows
  5:43Definition and Measurement of Fair Value
  3:39Valuation Techniques
  5:34Inputs to Valuation Techniques
  10:51Revaluation Model Under IFRS
  4:07Derecognition
  5:13Disclosure
  4:41Measuring P, P and E Efficiency
CONTINUOUS PLAY
  1:33:24Measuring Property, Plant, and Equipment
SUPPORTING MATERIAL
  PDFSlides: Measuring Property, Plant, and Equipment
  PDFMeasuring Property, Plant, and Equipment Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM