Property, Plant, And Equipment Analysis

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Property, Plant, and Equipment Analysis Resources Property, Plant, and Equipment Analysis Scoring Guide . P8-3 template . CP8-2 template . MBA6014 Course Alignment Map Activity Context Revisit the MBA6014 Course Alignment Map to review how all activities assist you in achieving the course competencies and overall program outcomes. Activity Instructions This assignment provides you an opportunity to apply the concepts of accounting for property, plant, and equipment, such as determining and recording the cost of tangible assets and computing the depreciation expense based on various depreciation methods. Using the knowledge gained from the Unit 4 studies, you should be able to analyze and interpret the financial information provided in a set of financials pertaining to property, plant, and equipment. Complete P8-3 (page 432) and CP8-2 (page 443) from Chapter 8 of your Financial Accounting textbook. Submission Requirements All quantitative assignments must be completed on the Microsoft Excel templates provided. Create one workbook with multiple tabs, copying each problem's template onto a separate tab and completing the work there. Submit this single file in the assignment area. Include your name and the assignment number in the file name; also include your name and the problem number on each tab of the document. All work should be shown. Assignments must not be submitted as a PDF. Refer to the scoring guide for this assignment to ensure that you meet the grading criteria. Note that one scoring guide is used to evaluate both of the problems in this assessment; each criterion in the scoring guide relates to one or both of the problems here.

Paper For Above instruction

The assignment focuses on applying accounting principles related to property, plant, and equipment (PP&E). Specifically, students are tasked with analyzing financial data involving the determination and recording of the costs associated with tangible fixed assets and calculating depreciation expenses using various methods. By completing exercises P8-3 and CP8-2 from Chapter 8 of the Financial Accounting textbook, students will demonstrate proficiency in these areas, thereby enhancing their ability to interpret the financial statements related to PP&E.

The core of this assignment involves computational analysis, requiring the use of provided Microsoft Excel templates. Students are instructed to create a comprehensive workbook containing multiple tabs, each dedicated to a specific problem. This structured approach ensures clarity and organization, facilitating a detailed review of the work product. It is essential that all calculations and entries are visible in the Excel sheets, adhering strictly to the provided templates. Submitting the work solely as a PDF is discouraged; instead, students should submit the Excel workbook, with their name and the specific problem number clearly marked on each tab and in the filename. Such detailed labeling assists instructors in grading accurately and efficiently.

Understanding the importance of these exercises extends beyond mere mechanical calculation. The problems are designed to deepen comprehension of how costs are capitalized for PP&E and how depreciation impacts financial reporting and decision-making. Different depreciation methods, such as straight-line, declining balance, and units of production, serve as practical tools for matching expenses with asset usage over time, affecting asset valuation and net income.

The assignment aligns with the broader goals of the course by fostering analytical skills and ensuring students can practically apply theoretical concepts. Revisiting the MBA6014 Course Alignment Map emphasizes how each activity builds toward mastery of core competencies, including financial analysis, ethical considerations, and effective communication of financial information. By completing these exercises, students also reinforce their understanding of how PP&E impacts the financial position and performance of a business.

References

  • Wild, J. J., Subramanyam, K. R., & Halsey, R. F. (2021). Financial accounting (12th ed.). McGraw-Hill Education.
  • Williams, J., Haka, S., Bettner, M., & Carcello, J. (2019). Financial and managerial accounting (15th ed.). McGraw-Hill Education.
  • Accounting Tools. (n.d.). Property, plant, and equipment (PP&E). Retrieved from https://www.accountingtools.com/articles/property-plant-and-equipment.html
  • FASB ASC Topic 360 – Property, Plant, and Equipment. Financial Accounting Standards Board. (2020). Retrieved from https://asc.fasb.org
  • Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2020). Intermediate accounting (17th ed.). Wiley.
  • Horngren, C. T., Sundem, G. L., & Elliott, J. A. (2018). Introduction to financial accounting (11th ed.). Pearson.
  • Brigham, E. F., & Houston, J. F. (2019). Fundamentals of financial management (15th ed.). Cengage Learning.
  • Investopedia. (2023). Depreciation methods. Retrieved from https://www.investopedia.com/terms/d/depreciationmethods.asp
  • CA Magazine. (2018). The importance of proper asset capitalization. Chartered Accountant Journal.
  • International Financial Reporting Standards (IFRS) Foundation. (2022). IAS 16 Property, Plant and Equipment. Retrieved from https://www.ifrs.org

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