Fixed Asset Accounting (Course Id 616)

Accounting - Accounting for Course Id 616

This online CPE course, Fixed Asset Accounting, addresses both the GAAP and IFRS accounting for all aspects of fixed assets, including their initial purchase, impairment, revaluation, and disposal. This fixed asset accounting course also covers the disclosure of fixed asset information, as well as related controls, measurements, record keeping, and policies and procedures.

NASBA QAS - NASBA Registry - 616

Course Learning Objectives

• Cite the general classifications of fixed assets.
  
• Identify the concepts used to evaluate fixed assets in the capital budgeting process.
  
• Note the accounting rules for the initial recognition of fixed assets.
  
• Cite the situations under which interest can be capitalized.
  
• Note the scenarios under which asset retirement obligations should be used and valuations assigned.
  
• Identify the methods used to depreciate fixed assets.
  
• Cite the instances in which the recorded amount of fixed assets may be adjusted at a later date.
  
• Note the accounting for an asset impairment.
  
• Note the accounting for assets to be derecognized in the accounting records.
  
• State the types of disclosures related to fixed assets.
  
• Cite the accounting rules related to the recordation of fixed asset transactions by not-for-profit entities.
  
• State the account structures and record keeping used for fixed assets.
  
• Recognize the controls to be used under specific circumstances when fixed assets are involved.
  
• Note the reasons for using fixed asset policies, and the circumstances under which certain policies and procedures are needed or not needed.
  
• Identify the methods used to track fixed assets, and the circumstances under which they are most useful.
  
• State the measurements that can be applied to fixed assets, and the circumstances under which they should be used.
  
• Note the fixed asset audit procedures that an auditor may employ, and the reasons for using them.

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

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

Discounted Payback

Capital Budget Proposal Analysis

The Outsourcing Decision

The Capital Budgeting Application Form

The Post Installation Review

The Lease or Buy Decision

Leasing Concerns

Leasing Advantages

Capital Budgeting with Little Cash

Chapter 3 - Initial Fixed Asset Recognition

The Capitalization Limit

The Base Unit

GAAP: The Initial Measurement of a Fixed Asset

Patent Measurement

Interpretive Commentary

GAAP: The Measurement of Assets Acquired in a Business Combination

GAAP: The Measurement of Assets Acquired in a Finance Lease

GAAP: Non-Monetary Exchanges

GAAP: Internal-Use Software

GAAP: Website Development Costs

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 Finance Lease

IFRS: Non-Monetary Exchanges

IFRS: Website Development Costs

IFRS: Internally Developed Intangible Assets

Chapter 4 - Interest Capitalization

Why and When Do We Capitalize Interest?

Assets for Which Interest Must be Capitalized

Assets for Which Interest is Not Allowed

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

Overview of Environmental Obligations

Measurement of Environmental Obligations

Recoveries Related to Environmental Obligations

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

Group Depreciation

Composite Depreciation

Depreciation Accounting Entries

Accumulated Depreciation

Depreciation Under IFRS

Other Depreciation Topics

Impact on Cash Flow Analysis

Depreciation and Market Value

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

GAAP: Measurement of Asset Impairment

GAAP: Impairment Testing Exemption for Intangible Assets

GAAP: The Impact of Asset Retirement Obligations

GAAP: Measurement of Disposal Losses on Assets Held for Sale

GAAP: The Asset to be Tested

GAAP: Timing of the Impairment Test

GAAP: Accounting for the Impairment of an Asset Group

GAAP: Reversing an Impairment Loss

GAAP: Reversing a Disposal Loss

Asset Impairment Under IFRS

IFRS: The Impairment Test

IFRS: The Asset to be Tested

IFRS: Goodwill and Impairment Testing

IFRS: Corporate Assets and Impairment Testing

IFRS: Timing of the Impairment Test

IFRS: Indications of Impairment

IFRS: Intangible Asset Measurement

IFRS: Determining Value in Use

IFRS: Determining the Fair Value less Costs to Sell

IFRS: Accounting for the Impairment of an Asset

IFRS: Accounting for the Impairment of a Cash-Generating Unit

IFRS: Reversing an Impairment Loss

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

Chapter 10 - Fixed Asset Disclosures

GAAP Disclosures

GAAP: General Fixed Asset Disclosures

GAAP: Asset Retirement Obligations

GAAP: Capitalized Interest Disclosures

GAAP: Change in Estimate Disclosures

GAAP: Intangible Asset Impairment Disclosures

GAAP: Intangible Asset Disclosures

IFRS Disclosures

IFRS: General Fixed Asset Disclosures

IFRS: Capitalized Interest Disclosures

IFRS: Change in Estimate Disclosures

IFRS: Estimates of Recoverable Amounts

IFRS: Held for Sale Disclosures

IFRS: Impairment Disclosures

IFRS: Intangible Asset Disclosures

IFRS: Revaluation Disclosures

IFRS: Optional 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

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

Operating Lease Record Keeping

Finance Lease Record Keeping

Document Retention

Fixed Asset Reports

Depreciation Report

Audit Report

Responsibility Report

Asset Replacement Report

Maintenance Report

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

The Capital Request Form

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

The Asset Disposal Form

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

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