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CMA Part 1
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Textbook
Introduction
1. External financial reporting decisions
2. Planning, budgeting, and forecasting
3. Performance management
4. Cost management
5. Internal control
6. Technology and analytics
Wrapping up
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1.2.4.1 Learning outcomes
Achievable CMA Part 1
1. External financial reporting decisions
1.2. Financial transactions
1.2.4. Property, plant, and equipment
Our CMA Part 1 course is currently in development and is a work-in-progress.

Learning outcomes

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The learning outcome statements related to property, plant and equipment are as follows:

  1. Determine the effect on the financial statements of using different depreciation methods
  2. Recommend a depreciation method for a given set of data
  3. Demonstrate an understanding of the accounting for impairment of long-term assets.

Although the learning outcome statements refer only to depreciation methods and impairment, it is best to explain the context of property, plant and equipment from initial recognition to the subsequent depreciation and impairment procedures. Initial recognition sets the carrying amount, depreciation allocates cost over its life, and impairment writes it down when unrecoverable - each is covered later in this course. This section follows U.S. GAAP; how IFRS differs (revaluation of long-lived assets and reversal of impairment losses) is covered in the GAAP vs. IFRS chapter.

Learning outcomes

  • Effects of depreciation methods, recommending a method, accounting for impairment

PP&E lifecycle

  • Recognition sets carrying amount; depreciation allocates cost; impairment writes down unrecoverable value

GAAP vs. IFRS

  • Follows U.S. GAAP; IFRS differences (revaluation, impairment reversal) covered elsewhere
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Next  | 1.2.4.2 Initial recognition of PPE
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Learning outcomes

The learning outcome statements related to property, plant and equipment are as follows:

  1. Determine the effect on the financial statements of using different depreciation methods
  2. Recommend a depreciation method for a given set of data
  3. Demonstrate an understanding of the accounting for impairment of long-term assets.

Although the learning outcome statements refer only to depreciation methods and impairment, it is best to explain the context of property, plant and equipment from initial recognition to the subsequent depreciation and impairment procedures. Initial recognition sets the carrying amount, depreciation allocates cost over its life, and impairment writes it down when unrecoverable - each is covered later in this course. This section follows U.S. GAAP; how IFRS differs (revaluation of long-lived assets and reversal of impairment losses) is covered in the GAAP vs. IFRS chapter.

Key points

Learning outcomes

  • Effects of depreciation methods, recommending a method, accounting for impairment

PP&E lifecycle

  • Recognition sets carrying amount; depreciation allocates cost; impairment writes down unrecoverable value

GAAP vs. IFRS

  • Follows U.S. GAAP; IFRS differences (revaluation, impairment reversal) covered elsewhere

More from Property, plant, and equipment

  • Initial recognition of PPE