What You'll Learn

  • Recall and define the concept of property
  • plant
  • and equipment (PPE) and its significance in accounting.
  • Classify and categorize different types of PPE assets based on their nature and usage.
  • Analyze and interpret the accounting standards and guidelines related to PPE recognition
  • measurement
  • and disclosure.
  • Apply appropriate accounting principles and methods to record PPE transactions accurately and efficiently.
  • Evaluate and select the most suitable depreciation method for a given PPE asset based on its characteristics and expected pattern of use.
  • Calculate and allocate depreciation expense using various depreciation methods
  • including straight-line
  • declining balance
  • and units of production.
  • Assess the impact of changes in estimates and revisions to depreciation calculations on financial statements and disclosures.
  • Differentiate between capital expenditures and revenue expenditures and their respective accounting treatment for PPE.
  • Evaluate the financial implications and reporting requirements of PPE disposals
  • retirements
  • and impairments.
  • Analyze and reconcile the differences between book value and fair value of PPE assets for reporting purposes.
  • Engage in critical thinking and problem-solving exercises to address complex scenarios and challenges related to PPE accounting.

Requirements

  • Basic Accounting Knowledge: A solid understanding of fundamental accounting principles
  • including the double-entry system
  • general ledger accounts
  • and financial statement components.
  • Proficiency in Financial Transactions: Familiarity with various financial transactions such as sales
  • purchases
  • cash receipts
  • and payments
  • and the ability to record them accurately using appropriate journal entries.
  • Knowledge of Financial Statements: Understanding the purpose and structure of financial statements
  • including the income statement
  • balance sheet
  • and statement of cash flows
  • and the ability to interpret the information presented in these statements.

Description

Welcome to our comprehensive course on Property, Plant, and Equipment (PPE), also known as fixed assets or depreciable assets. In this course, we will dive deep into the world of PPE and provide you with a thorough understanding of how to effectively manage and account for these critical assets in your financial statements.

We will begin by exploring the fundamental concepts of PPE, including what it represents and why it is essential for businesses. You will learn how to accurately record PPE transactions, ensuring that they are properly recognized and reflected in your accounting records.

One of the key aspects of managing PPE is depreciation, which reflects the gradual wear and tear or obsolescence of these assets over time. We will cover multiple depreciation methods to help you determine the most appropriate approach for your organization. The straight-line depreciation method, widely used for its simplicity, will be thoroughly explained along with its calculation techniques. Additionally, we will delve into the double declining balance method, an accelerated depreciation approach that allocates higher depreciation in the earlier years of an asset's life. Furthermore, we will explore the units of production method, which bases depreciation on the actual usage or production output of the asset.

Understanding the difference between capital expenditures and revenue expenditures is crucial in properly classifying PPE-related costs. We will guide you through the intricacies of distinguishing between these expenditure types and how to accurately record them in your financial statements.

Disposing of PPE is another critical aspect we will address. Whether through sale, retirement, or other means, you will learn the proper accounting treatment and journal entries for PPE disposals. We will also cover the scenarios where PPE may or may not be fully depreciated and discuss how to account for any cash or non-cash transactions involved in the disposal process.

Throughout the course, we will provide a comprehensive overview of key terms and definitions related to property, plant, and equipment, ensuring that you are familiar with the necessary vocabulary and terminology used in this domain.

To enhance your learning experience, the course includes valuable resources such as downloadable PDF files, preformatted Excel practice files, multiple-choice practice questions, short calculation questions, and engaging discussion prompts. These resources will support your understanding, reinforce concepts, and provide opportunities for hands-on practice and active participation in the learning process.

Your instructor, a highly experienced professional with extensive knowledge in accounting concepts and practical expertise in software like QuickBooks, will guide you through the course. With certifications such as being a Certified Public Accountant (CPA), Chartered Global Management Accountant (CGMA), and possessing a Master of Science in Taxation, the instructor brings a wealth of real-world insights and teaching experience to help you master the intricacies of PPE accounting.

By the end of this course, you will have gained a comprehensive understanding of property, plant, and equipment, enabling you to effectively manage, account for, and make informed decisions regarding these valuable assets in your organization's financial statements.

Join us now and embark on your journey to becoming a proficient PPE accountant!

Who this course is for:

  • Students and Accounting Majors: Undergraduate or graduate students pursuing a degree in accounting or related fields who want to strengthen their understanding of financial accounting principles and practices.
  • Accounting Professionals: Working professionals in accounting roles
  • such as junior accountants
  • bookkeepers
  • or financial analysts
  • who seek to deepen their knowledge and stay updated with current accounting practices.
  • "Small Business Owners and Entrepreneurs: Business owners or entrepreneurs who want to gain a solid foundation in financial accounting to effectively manage their companys financial records and make informed financial decisions."
  • Anyone Interested in Financial Accounting: Individuals with a general interest in financial accounting and a desire to understand the principles and concepts underlying financial statements and financial reporting.
Financial Accounting-Depreciation Calculation & Fixed Assets

Course Includes:

  • Price: FREE
  • Enrolled: 57229 students
  • Language: English
  • Certificate: Yes
  • Difficulty: Beginner
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