Worked-example setupScope and assumptions
- All movement amounts and classifications are supplied and use one reporting currency.
- The $20,000 reclassification removes gross PP&E, and the $5,000 currency effect reduces accumulated amounts.
- The example verifies arithmetic and account roles; it does not approve the underlying recognition or valuation judgments.
- Period
- One annual reporting period
- Units
- US dollars
- Rounding
- Whole US dollars; no rounding required
Reconcile gross PP&E
Cedar Forge begins with $900,000 of gross PP&E. Additions include $120,000 paid in cash, $30,000 still owed, and a $15,000 noncash asset retirement cost. Gross additions are therefore $165,000. A disposal removes $100,000, and a supported reclassification removes another $20,000. Ending gross PP&E is $945,000.
$900,000 + $165,000 − $100,000 − $20,000 = $945,000
Reconcile accumulated amounts
Beginning accumulated depreciation and impairment is $300,000. Current movements add $80,000 of depreciation and $10,000 of impairment. The disposal removes $60,000, and the supplied currency effect removes $5,000. Ending accumulated amounts are $325,000.
$300,000 + $80,000 + $10,000 − $60,000 − $5,000 = $325,000
Ending net PP&E is $620,000: $945,000 gross less $325,000 accumulated. The addition bridge also matters. Only $120,000 of the $165,000 gross additions was paid in cash during the period. The remaining $45,000 is unpaid or noncash.
The schedules tie, but that result proves only the stated arithmetic. Reviewers still need evidence for recognition, measurement, dates, classification, and disclosure.
Verified calculation · property plant equipment rollforward
The curriculum loader recomputed this example before it entered the site build. Expand any structured input to inspect the stated facts.
- accumulated removed
- 60,000
- beginning accumulated
- 300,000
- beginning gross
- 900,000
- cash additions
- 120,000
- depreciation
- 80,000
- gross disposals
- 100,000
- impairment
- 10,000
- other accumulated movements
- 1 field
Inspect data
{
"currency_effect": -5000
}- other gross movements
- 1 field
Inspect data
{
"reclassification_out": -20000
}- other noncash additions
- 1 field
Inspect data
{
"asset_retirement_cost": 15000
}- reported ending accumulated
- 325,000
- reported ending gross
- 945,000
- reported ending net
- 620,000
- unpaid additions
- 30,000
Recomputed result
| Measure | Value |
|---|---|
| ending accumulated | 325,000 |
| ending gross | 945,000 |
| ending net | 620,000 |
| gross additions | 165,000 |
| noncash additions | 45,000 |