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Lesson 10 of 12

Derecognition of PPE and Intangible Assets

Derecognition happens when an asset is sold, exchanged or abandoned and therefore removed from the balance sheet.

 Balance SheetIncome Statement
Asset is soldAsset is removed from balance sheet.A loss/gain equal to carrying value less sale proceeds is reported on income statement.
Asset is exchangedThe old asset is removed from balance sheet.
The new asset is added to balance sheet at fair value.		A loss/gain is reported in income statement equal to difference between:
  • Carrying value of old asset and fair value of old asset
  • Carrying value of old asset and fair value of new asset (if reliable estimated)
Asset is abandonedAsset is removed from balance sheet.A loss/gain is reported in income statement equal to the carrying value of the asset.
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Impact of Asset Impairment

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Disclosures Related to PPE and Intangible Assets

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Long-lived Assets

12 lessons

Lessons

1
Capitalizing Vs. Expensing Costs
2
Financial Reporting of Intangible Assets
3
Depreciation Methods for Property, Plant, and Equipment (PPE)
4
Impact of Depreciation Methods on Financial Statements
5
Depreciation – Important Points
6
Amortization of Intangible Assets
7
Revaluation Model for Fixed Assets
8
Impairment of Long-lived Assets
9
Impact of Asset Impairment
10
Derecognition of PPE and Intangible Assets
11
Disclosures Related to PPE and Intangible Assets
12
Financial Reporting of Investment Property Vs. PPE

Quizzes

Long-lived Assets
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