Video: Property, Plant and Equipment Overview and Objectives

In this lesson, Nick Palazzolo, CPA, breaks down the intricacies of dealing with property, plant, and equipment (PP&E) on the balance sheet. He walks through a series of objectives starting with the calculations of gross and net PP&E balances as well as the related journal entries, including purchases and capital additions. Nick also clarifies the accounting treatment for gains and losses upon the disposal of fixed assets. He goes on to tackle the measurement of impairment losses on long-lived assets, ensuring these concepts are thoroughly explained. Additionally, Nick covers how to handle non-monetary exchanges and the criteria for classifying an asset as held for sale, an essential consideration for correct financial statement presentation. Join him as he enthusiastically unravels these topics to equip you with the necessary tools to adjust carrying amounts and to recognize losses for assets held for sale.