{"id":248,"date":"2024-09-06T16:47:54","date_gmt":"2024-09-06T16:47:54","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/introduction-to-reporting-property-plant-and-equipment\/"},"modified":"2024-09-06T16:47:54","modified_gmt":"2024-09-06T16:47:54","slug":"introduction-to-reporting-property-plant-and-equipment","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/introduction-to-reporting-property-plant-and-equipment\/","title":{"raw":"Introduction to Reporting PP&amp;E","rendered":"Introduction to Reporting PP&amp;E"},"content":{"raw":"\n<h2>What you will learn to do: Demonstrate Proper Financial Presentation of PP&amp;E<\/h2>\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/30203936\/startup-593341_1920.jpg\"><img class=\"aligncenter size-medium wp-image-4729\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/30203936\/startup-593341_1920-300x200.jpg\" alt=\"People with notebooks and computers sitting at a table.\" width=\"300\" height=\"200\"><\/a>\n\nCompanies record depreciation on all plant assets except land. Since the amount of depreciation may be relatively large, depreciation expense is often a significant factor in determining net income. For this reason, most financial statement users are interested in the amount of, and the methods used to compute, a company\u2019s depreciation expense.\n\nIn this section, we\u2019ll cover the most common disclosures related to PP&amp;E, including the balance sheet presentation known as a classified balance sheet, common footnotes, and other supporting information required by GAAP.\n","rendered":"<h2>What you will learn to do: Demonstrate Proper Financial Presentation of PP&amp;E<\/h2>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/30203936\/startup-593341_1920.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-4729\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/10\/30203936\/startup-593341_1920-300x200.jpg\" alt=\"People with notebooks and computers sitting at a table.\" width=\"300\" height=\"200\" \/><\/a><\/p>\n<p>Companies record depreciation on all plant assets except land. Since the amount of depreciation may be relatively large, depreciation expense is often a significant factor in determining net income. For this reason, most financial statement users are interested in the amount of, and the methods used to compute, a company\u2019s depreciation expense.<\/p>\n<p>In this section, we\u2019ll cover the most common disclosures related to PP&amp;E, including the balance sheet presentation known as a classified balance sheet, common footnotes, and other supporting information required by GAAP.<\/p>\n","protected":false},"author":6,"menu_order":19,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Introduction to Reporting Property, Plant, and Equipment\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"\",\"author\":\"StartupStockPhotos\",\"organization\":\"\",\"url\":\"https:\/\/pixabay.com\/photos\/startup-start-up-people-593341\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"https:\/\/pixabay.com\/service\/terms\/#license\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":229,"module-header":"","content_attributions":[{"type":"original","description":"Introduction to Reporting Property, Plant, and Equipment","author":"Joseph Cooke","organization":"Lumen Learning","url":"","project":"","license":"cc-by","license_terms":""},{"type":"cc","description":"","author":"StartupStockPhotos","organization":"","url":"https:\/\/pixabay.com\/photos\/startup-start-up-people-593341\/","project":"","license":"cc0","license_terms":"https:\/\/pixabay.com\/service\/terms\/#license"}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/248"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/users\/6"}],"version-history":[{"count":0,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/248\/revisions"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/parts\/229"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/248\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/media?parent=248"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=248"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/contributor?post=248"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/license?post=248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}