This course identifies acquisition costs for different types of noncurrent operating assets and properly accounting for noncurrent operating asset acquisitions. Capitalized and expensed costs are identified. Issues impacting proper recognition of amortization or impairment for intangible assets are explained. Various depreciation methods including straight line, accelerated and use-factor are covered. Incorporating changes in estimates and methods into the computation of depreciation for current and future periods are discussed. Accounting for the sale and exchange of depreciable assets is included.
Students will Learn:
- To identify and properly account for noncurrent operating asset acquisitions.
- To use various depreciation methods to compute annual depreciation expenses.
- To calculate depletion of natural resources.
Module 1 – PP&E Acquisition & Valuation
Noncurrent Assets – PP&E Acquisition
- Learning Objective: Evaluate the characteristics of non-current assets: property, plant & equipment, intangible assets, and acquisition costs, analyze the aspects of acquisition costs other than simple cash, assess the facets of self-constructed assets, and understand the recognition of costs subsequent to acquisition.
Valuation of PP&E
- Learning Objective: Analyze non-current asset properties of exchanges, commercial substance, and loss & gain situation, assess the valuation of PP&E exchanges that lacks commercial substance, and compute PP&E exchange with and without commercial substance.
Module 2 – Property, Plant, and Equipment
Property, Plant, and Equipment
- Learning Objective: Analyze the principles of cost allocation, prove ability to calculate depreciation using the various depreciation methods, and use the group & composite method to calculate depreciation.
Property, Plant, and Equipment (continued)
- Learning Objective: Evaluate the aspects of the Modified Accelerated Cost System (MACRS), calculate and construct journal entries when computing the change in estimated life, and account for depreciation when there is a change in depreciation method used.
Module 3 – Property, Plant, and Equipment & Noncurrent Assets
Property, Plant, and Equipment (Continued)
- Learning Objective: Analyze the principles for asset impairment, show ability to calculate an impairment loss, construct presentation and analysis of property, plant, and equipment for noncurrent assets.
Noncurrent Assets – PP&E Utilization: Impairment, Disposal, & Exchange
- Learning Objective: Understand the characteristics and issues with intangible assets, analyze the six major categories of intangible assets, and demonstrate ability to account for the six categories of intangible assets.
Module 4 – Intangible Noncurrent Assets
Noncurrent Assets – Intangible: Acquisition
- Learning Objective: Analyze the nature of impairment for intangible assets, demonstrate ability to prepare a journal entry for impairment of intangible assets, understand the concept of research and development (R&D) costs, and prove ability to properly present intangible assets and related items on a balance sheet.
Noncurrent Assets – Intangible: Amortization, Impairment, & Exchange
- Learning Objective: Analyze the various costs associated with natural resources, demonstrate ability to account for the cost of natural resources, prove ability to calculate depletion costs, analyze the concept of change in estimated units of production, and prepare journal entries when calculating for depletion and depreciation.
Module 5 – Natural Resources of Noncurrent Assets
Noncurrent Assets – Natural Resources
- Learning Objective: Use accounting skills to solve problems regarding natural resources, demonstrate ability to find PP&E acquisition costs, and prepare a journal entry.
Noncurrent Assets – Natural Resources (Continued)
- Learning Objective: Demonstrate ability to account for the exchange of nonmonetary assets with and without commercial substance, calculate depreciation using the various cost allocation methods, use accounting skills to find the purchase price and amortization of a patent.
- Business undergraduates or MBA students with an accounting or finance focus.