Upon successful completion of this course, participants will be able to:
- Section 1
- Differentiate between an expense and a fixed asset, as well as further classify a fixed asset into a fixed asset category; describe the methods used to evaluate a capital budgeting proposal; and describe which costs can be recognized as a fixed asset under purchase, acquisition, 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, depletion, and amortization of fixed assets; describe when you can capitalize subsequent expenditures; and explain how to revalue both tangible and intangible assets.
- Section 2
- Describe how to test and account for asset impairment, as well as explain the differences between the accounting standards for it, as stated under Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
- Explain the proper classification for an asset that is to be disposed of, and describe how to properly account for it.
- 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.
- Section 3
- Determine how to classify fixed asset information into general ledger accounts, and summarize related information about each asset; explain the types of controls needed to avoid the improper acquisition, recordation, and disposition of fixed assets, as well as to mitigate the possibility of their theft; and explain the various fixed asset measurements that can be used to gain a greater 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.