Fixed Asset Accounting: Depreciation Methods, Disposals, Revaluation & Componentisation
Capitalise or expense, the cost of an asset, straight-line with partial years, declining balance and units of production, changes in estimates, part-exchange disposals with the journal, the revaluation model and componentisation with a roll-forward and waterfall chart: 8 graded labs on one freight company’s asset register.
The first lesson is free — no account needed.
About this course
A fixed asset accounting course that takes one fictional freight company's asset register through a year in a spreadsheet, for accounting students, bookkeepers, ACCA and CPA candidates and finance staff. You decide which purchases to capitalise and which to expense with an IF threshold, build the cost of a sorting machine from invoices while leaving out what does not belong, depreciate assets straight-line by the months in service, build five-year double-declining balance and units-of-production schedules and chart the carrying amounts, update depreciation prospectively after a change in useful life and residual value, part-exchange a forklift with the loss on disposal and the journal, revalue a depot with the surplus to other comprehensive income, and depreciate a building by component in a roll-forward with a waterfall chart. The principles follow IAS 16 in general terms, with no affiliation with the IASB. The first lab is free.
Lessons
- Capitalise or Expense? Thresholds & Judgement CallsFree
- The Cost of an Asset: Purchase Price & Directly Attributable Costs Pro
- Straight-Line Depreciation with Partial Years: Months in Service Pro
- Declining Balance & Units of Production: a Five-Year Schedule Pro
- Change in Useful Life & Residual Value: Prospective Depreciation Pro
- Disposal with a Part-Exchange: Gain or Loss & the Journal Pro
- The Revaluation Model: Surplus to OCI & Depreciation Afterwards Pro
- Componentisation & the Fixed Asset Roll-Forward with a Waterfall Chart Pro