Measuring Property, Plant, and Equipment 2 CPE

<p>Property, plant, and equipment (PP&amp;E) are non-current, tangible assets shown on most businesses&#39; balance sheets. PP&amp;E items play a crucial part in entities&#39; operations because they are an essential resource for producing goods, supplying services, and generating revenues. The accurate measurement of PP&amp;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&#39; operations, and manage their assets efficiently. Nowadays, the importance of accurately measuring PP&amp;E items&#39; 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.</p>

<p>This course explains and illustrates the PP&amp;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&amp;E efficiency.</p>

<p>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.</p>

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

Prerequisites

No advanced preparation or prerequisites are required for this course.

Learning Objective

• 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: March 20, 2024