• To be able to differentiate between an expense and a fixed asset, as well as to be able to further classify a fixed asset into a fixed asset category.
• Describe the methods used to evaluate a capital budgeting proposal.
• Describe which costs can be recognized as a fixed asset under purchase, ac-quisition, lease, and exchange transactions.
• Explain when you should capitalize interest, and how to calculate it.
• Determine how to calculate the cost of an asset retirement obligation.
• Describe how to calculate the depreciation and amortization of fixed assets.
• Describe when you can capitalize subsequent expenditures, and explain how to revalue both tangible and intangible assets.
• Describe how to test and account for asset impairment, as well as explain the differences between the accounting standards for it, as stated under GAAP and IFRS.
• Explain the proper classification for an asset that is to be disposed of, and de-scribe how to properly account for it.
• Formulate the proper disclosures related to an entity’s ownership of various types of fixed assets.
• Determine when a not-for-profit entity should capitalize a contributed asset, as well as the correct valuation at which to record it, and whether to depreciate it.
• Determine how to classify fixed asset information into general ledger ac-counts, and to summarize related information about each asset.
• Explain the types of controls needed to avoid the improper acquisition, recor-dation, and disposition of fixed assets, as well as to mitigate the possibility of their theft.
• Create a system of policies and procedures for fixed asset transactions.
• Describe the methods available for tracking and monitoring fixed assets.
• Explain the various fixed asset measurements that can be used to gain a great-er understanding of the adequacy, return on, and utilization of fixed assets.
• Explain the objectives and procedures used by auditors for fixed assets, and the formatting of the reports they request from management.

Chapter 1
Introduction to Fixed Assets

Chapter 2
Capital Budgeting Analysis

Chapter 3
Initial Fixed Asset Recognition

Chapter 4
Interest Capitalization

Chapter 5
Asset Retirement Obligations

Chapter 6
Depreciation and Amortization

Chapter 7
Subsequent Fixed Asset Measurement

Chapter 8
Fixed Asset Impairment

Chapter 9
Fixed Asset Disposal

Chapter 10
Fixed Asset Disclosures

Chapter 11
Not-for-Profit Fixed Asset Accounting

Chapter 12
Fixed Asset Record Keeping

Chapter 13
Fixed Asset Controls

Chapter 14
Fixed Asset Policies and Procedures

Chapter 15
Fixed Asset Tracking

Chapter 16
Fixed Asset Measurements

Chapter 17
Fixed Asset Auditing

Part I – Accounting for Fixed Assets

Chapter 1 - Introduction to Fixed Assets

What are Fixed Assets?

The “Fixed Asset” Designation

Fixed Asset Classifications

Applicable Accounting Frameworks

Accounting for Fixed Assets

Accounting for Intangible Assets

Accounting for Not-for-Profit Fixed Assets

Fixed Asset Disclosures

Fixed Asset Controls

Fixed Asset Policies and Procedures

Fixed Asset Record Keeping

Fixed Asset Auditing

Fixed Asset Measurements

Chapter 2 - Capital Budgeting Analysis

Overview of Capital Budgeting

Bottleneck Analysis

Net Present Value Analysis

The Payback Method

Capital Budget Proposal Analysis

The Outsourcing Decision

The Capital Budgeting Application Form

The Post Installation Review

The Lease or Buy Decision

Chapter 3 - Initial Fixed Asset Recognition

The Capitalization Limit

The Base Unit

GAAP: The Initial Measurement of a Fixed Asset

GAAP: The Measurement of Assets Acquired in a Business Combination

GAAP: The Measurement of Assets Acquired in a Capital Lease

GAAP: Non-Monetary Exchanges

IFRS: Initial Inclusions in a Fixed Asset

IFRS: Initial Cost of a Fixed Asset

IFRS: The Measurement of Assets Acquired in a Business Combination

IFRS: The Measurement of Assets Acquired in a Capital Lease

IFRS: Non-Monetary Exchanges

Chapter 4 - Interest Capitalization

Why and When Do We Capitalize Interest?

Assets for Which You Must Capitalize Interest

Assets for Which You Do Not Capitalize Interest

The Interest Capitalization Period

The Capitalization Rate

Calculating Interest Capitalization

Derecognizing Capitalized Interest

Interest Capitalization Under IFRS

Chapter 5 - Asset Retirement Obligations

The Liability for an ARO

The Initial Measurement of an ARO

Subsequent Measurement of an ARO

Settlement of an ARO

AROs Under IFRS

Chapter 6 - Depreciation and Amortization

The Purpose of Depreciation

Depreciation Concepts

Accelerated Depreciation

Straight-Line Method

Sum-of-the-Years’ Digits Method

Double-Declining Balance Method

Depletion Method

Units of Production Method

MACRS Depreciation

The Depreciation of Land

The Depreciation of Land Improvements

Depreciation Accounting Entries

Accumulated Depreciation

Depreciation Under IFRS

Other Depreciation Topics

Chapter 7 - Subsequent Fixed Asset Measurement

The Capitalization of Additional Expenditures

Asset Revaluation for Tangible Assets

Asset Revaluation for Intangible Assets

Chapter 8 - Fixed Asset Impairment

Asset Impairment Under GAAP

Asset Impairment Under IFRS

Chapter 9 - Fixed Asset Disposal

Asset Derecognition

The Held-for-Sale Classification

Reclassification from Held for Sale

Discontinued Operations

Abandoned Assets

Idle Assets

Asset Disposal Accounting

Asset Disposal Under IFRS

Part II – Special Accounting for Fixed Assets

Chapter 10 - Fixed Asset Disclosures

GAAP Disclosures

IFRS Disclosures

Chapter 11 - Not-for-Profit Fixed Asset Accounting

Initial Recognition of Fixed Assets

Restrictions on Contributed Assets

Valuation of Contributed Assets

Valuation of Contributed Services

Valuation of Art and Similar Items

Depreciation of Fixed Assets

Recordation of Fixed Assets

Fixed Asset Controls in a Not-for-Profit Entity

Part III – Fixed Asset Systems

Chapter 12 - Fixed Asset Record Keeping                                                                        

Fixed Asset Accounts

Construction Project Record Keeping

Building Record Keeping

Equipment Record Keeping

Land Record Keeping

Lease Record Keeping

Document Retention

Fixed Asset Reports

Chapter 13 - Fixed Asset Controls

Controls for Fixed Asset Acquisition

Controls for Fixed Asset Construction

Controls for Fixed Asset Theft

Controls for Fixed Asset Valuation

Controls for Fixed Asset Depreciation

Controls for Fixed Asset Disposal

The Control of Laptop Computers

Chapter 14 - Fixed Asset Policies and Procedures

Capital Budgeting Policies and Procedures

Asset Recognition Procedures

Asset Revaluation Policies and Procedures

Asset Exchange Policies and Procedures

Depreciation Policies and Procedures

Impairment Policies and Procedures

Asset Retirement Obligation Policies and Procedures

Intangible Asset Policies and Procedures

Transfer Policies

Disposal Policies and Procedures

Record Keeping Policies

Tracking Policies and Procedures

The Fixed Asset Manual

Chapter 15 - Fixed Asset Tracking

Tag Tracking

Bar Code Tracking

RFID Tracking – Active Transmission

RFID Tracking –Passive Transmission

Wireless Monitoring

Part IV – Related Topics

Chapter 16 - Fixed Asset Measurements

Sales to Fixed Assets Ratio

Repairs and Maintenance Expense to Fixed Assets Ratio

Accumulated Depreciation to Fixed Assets Ratio

Cash Flow to Fixed Asset Requirements Ratio

Return on Assets Employed

Return on Operating Assets

Bottleneck Utilization

Unscheduled Machine Downtime

Chapter 17 - Fixed Asset Auditing

Fixed Asset Audit Objectives

Fixed Asset Audit Procedures

Auditor Requests

Appendix - Journal Entries

Glossary