Fixed Asset Accounting

12 Credits: Accounting


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Fixed Asset Accounting

Course Level
CPE Credits

12 Credits: Accounting

Course Description

Fixed asset accounting can be a complex area with extensive implications on a company’s value. In this thorough and well-written course, accounting expert Steven Bragg uses real-life examples to illustrate the principles covered, and offers helpful tips and advice that can be easily implemented. This course addresses both the GAAP and IFRS accounting for all aspects of fixed assets, including their initial purchase, impairment, revaluation, and disposal.

This course also covers:

  • Disclosure of fixed asset information
  • Capital budgeting
  • Asset recognition
  • Interest capitalization
  • Asset retirement obligations
  • Financial statement disclosures associated with fixed assets
  • Creating strong control systems for fixed assets
  • Fixed asset record keeping
  • Ratios that can be used to monitor fixed assets
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Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • State why construction in progress is a temporary account
  • Identify an advantage of having many fixed asset classifications
  • Define depreciation

Chapter 2

  • Specify where constraint analysis is used
  • Define throughput
  • List a way the payback method works well in analyzing a budget

Chapter 3

  • Identify fixed asset costs to be capitalized and how to value fixed assets acquired in a business combination
  • Cite when to capitalize a lease
  • State how to account for a major inspection under IFRS

Chapter 4

  • Specify when to capitalize interest and which projects to capitalize interest on
  • Cite when to terminate interest capitalization in a dependent completion project
  • Define interest capitalization rate

Chapter 5

  • Identify when to defer an asset retirement obligation and what to do with a retirement obligation when there is no probability distribution
  • Define accretion expense

Chapter 6

  • Define depletion
  • Identify when an assumption is made using the mid-month convention
  • Calculate first-year depreciation using the double declining balance method
  • Specify when depreciating land is acceptable

Chapter 7

  • Cite possible choices and best practices for situations under the IFRS revaluation model
  • Identify when you are permitted to revalue fixed assets on a rolling basis

Chapter 8

  • Identify what to do if an asset group is impaired
  • Cite when it is permissible to reverse an impairment loss under GAAP
  • Specify how to tell that a prior impairment loss has been reduced under IFRS

Chapter 9

  • Cite how to measure fixed assets that are being moved out of held for sale status
  • Identify proper accounting for abandoned, temporarily idle, or disposed of assets

Chapter 10

  • Identify what should be disclosed under GAAP for capitalized interest or an impairment loss on an intangible asset
  • Identify items not disclosed under IFRS concerning change of estimate information or optional fixed asset disclosure

Chapter 11

  • Cite when to record a contributed asset as a gain and what may be recorded from contributions of art
  • Cite proper recognition of conditional promises to give

Chapter 12

  • Cite why a single accumulated depreciation account is advantageous
  • Define chart of accounts
  • Identify the purpose of the responsibility report and project cost sheet

Chapter 13

  • Define a fixed asset acquisition control
  • Identify what areas specific actions are designed to be controls for
  • Cite what is included in a good corporate capitalization limit

Chapter 14

  • Specify when an interest capitalization procedure is unnecessary
  • Identify when fixed asset transfer policies are not being utilized best

Chapter 15

  • Identify potential uses of a paper identification tag and an alternative to a metal tag
  • List two benefits of bar code tags in asset tracking
  • Identify what wireless monitors can and cannot track

Chapter 16

  • Identify the effect of an increasing ratio of repairs and maintenance to fixed assets
  • Identify a situation that are not best for using the fixed asset requirements ratio
  • Specify the purpose of return on operating assets
  • List effects of unscheduled machine downtime

Chapter 17

  • Identify why auditors may perform actions like comparing the capital budget to actual purchases or match assets to a fixed asset register during a physical count
  • Identify an audit activity related to fixed asset disposals
  • Cite the purpose of the purchases detail binder
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Course Specifics

Course ID
Revision Date
October 16, 2023

There are no prerequisites.

Advanced Preparation


Compliance Information

NASBA Provider Number: 103220

CMA Notice: Western CPE makes every attempt to maintain our CMA CPE library, to ensure a course meets your continuing education requirements please visit Insitute of Management Accountants (IMA)

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

Meet The Experts

Steven M. Bragg Headshot

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 250 business books and courses. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast. Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and …

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