IFRS Learning Module 7: Property, Plant and Equipment (Course Id 2439)

• Who is this course for?
  This course is intended for anyone needing Continuing Professional Education (CPE), especially CPAs and accounting professionals seeking to understand IFRS rules for fixed assets.

• What is this course about or what problem does this course solve?
  This course provides an in-depth overview of IAS 16, the IFRS standard for accounting for property, plant, and equipment, helping professionals properly classify, measure, depreciate, and disclose fixed assets.

• How can the knowledge from this course be used?
  Learners can apply the knowledge to accurately record, report, and evaluate fixed asset transactions under IFRS, and understand key differences with U.S. GAAP.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding IFRS standards, especially IAS 16, is crucial for professionals dealing with international financial reporting, ensuring compliance and accuracy in global accounting practices.

• When is this course relevant or timely?
  Released in 2024 and reflecting the latest standards and convergence efforts between IFRS and U.S. GAAP, this course is timely for current financial reporting needs.

• How is a course like this consumed or used?
  Delivered as a QAS self-study text course, participants review the material independently and must pass a final exam with a minimum score of 70% to earn 2.5 CPE credits.

IFRS Learning Modules are a series of courses that provide in-depth overviews of various topics related to International Financial Reporting Standards (“IFRS”). IFRS represents the global accounting principles that provide the foundation for most of the world’s financial reporting. These Standards establish the recognition, measurement, presentation and disclosure requirements for transactions and events reflected in IFRS financial statements.

Module 7 of the IFRS Learning Module series presents an overview of IAS 16 Property, Plant and Equipment, the accounting standard for classifying and measuring property, plant and equipment (also known as ‘fixed assets’) in IFRS financial statements. The course also discusses the IASB’s and FASB’s efforts towards achieving convergence in fixed assets reporting.

NASBA QAS - Text - NASBA Registry - 2439

Module Learning Objectives

• Explain the proper accounting treatment for acquisitions of property, plant and equipment (and other associated costs) under IFRS.
  
• Calculate depreciation using the methods permitted under IAS 16.
  
• Describe the process for determining whether or not a long-lived asset is impaired under IAS 36.
  
• Distinguish between the ‘cost’ and ‘revaluation’ accounting models (as described in IAS 16).
  
• Describe the similarities and differences between IFRS and U.S. GAAP in the area of property, plant and equipment.
  

Module 7:  Property, Plant and Equipment

1.0   Introduction to IAS 16

1.1   Objective

1.2   Scope

2.0   Acquisition of Property, Plant and Equipment

2.1   Determination of cost

2.2   Lump-sum purchases

2.3   Interest costs during construction (IAS 23)

2.4   Deferred-payment contracts

2.5   Issuance of Shares

2.6   Non-monetary asset exchanges

3.0   Costs after Acquisition

3.1   Additions

3.2   Improvements and replacements

3.3   Rearrangement and reorganization

3.4   Repairs

4.0   Depreciation Factors

4.1   Depreciation defined

4.2   Depreciable amount of an asset

4.3   Useful life of an asset

5.0   Depreciation Methods

5.1   Straight-line method

5.2   Diminishing-balance methods

5.3   Activity-based method

6.0   Impairments

7.0   Revaluations

8.0   Disposal of Property, Plant and Equipment

9.0   Disclosures

10.0   IFRS & U.S. GAAP Convergence

11.0   Module Summary

10.0   Review Answers

Glossary