Measuring Property, Plant, and Equipment

Learning Objectives

• To distinguish between property, plant, and equipment (PP&E) items and other types of assets.
• To measure and record the carrying value of PP&E items.
• To explore the impairment test.
• To measure the fair value of PP&E items under ASC 360 and IAS 16.
• To measure the efficiency of PP&E items.

Course Description

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 measure PP&E items' value became 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.

Key topics: 

• PP&E items recognition and measurement process step-by-step
• Initial recognition, subsequent measurement, depreciation methods for PP&E
• Impairment test
• Fair value measurement, valuation techniques, revaluation model under IFRS
• Disposals, change in use and measuring PP&E efficiency

This webinar 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.

Overview

• Initial Recognition

  4 mins
• Subsequent Expenditures

  17 mins
• Depreciation Methods

  21 mins
• Selection of a Depreciation Methods

  31 mins
• Indicators of Impairment

  34 mins
• Definition of fair value

  55 mins
• Revaluation Model Under IFRS

  69 mins
• Decrecognition

  80 mins