This technical note provides an overview of accounting for property, plant, and equipment and depreciation expense. It discusses determining what costs related to the asset should be capitalized and what should be expensed, determining what amount should be recorded on the income statement each period as depreciation expense (including alternative depreciation methods), determining if and when a change in the value of an asset should be recorded, and determining when to dispose of a fixed asset and how to reflect that in the financial statements.
