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Property, plant and equipment
FAR Chapter 13 · Area II · Blueprint II.D
Property, plant and equipment is the biggest number on many balance sheets, and it generates more exam calculations than almost any other account. The Blueprint asks you to calculate the capitalized cost, depreciation, disposals, impairment and held-for-sale amounts, and to prepare rollforwards. One machine that costs $100,000 runs through most of this chapter so you can compare the methods side by side.
In this chapter
- What to capitalize
- Self-constructed assets and capitalized interest
- Depreciation methods
- Changes in estimate and disposals
- Nonmonetary exchanges
- Impairment of assets held and used
- Assets held for sale, and the rollforward
- Depletion, group depreciation and donated assets
This chapter has 8 lessons, 52 practice MCQs with explanations and 20 simulations, plus flashcards and a recall sheet.
What this chapter covers
- Capitalized cost
- depreciation
- disposals
- impairment
- assets held for sale
- rollforwards and reconciliations