GAAP Applied to PPE & Intangibles

The video tutorial discusses the recording and reporting of property, plant, and equipment (PPE) and intangible assets under GAAP. It explains the cost model used by GAAP, emphasizing historical cost for PPE and systematic amortization for intangibles. The tutorial highlights disclosure requirements, including depreciation and amortization expenses, and the impact on quality of earnings. It contrasts GAAP with international standards, noting differences in capitalization and expense treatment, which affect earnings assessment.

What is the primary model used by GAAP for recording property, plant, and equipment (PPE)?

How does GAAP require the disclosure of accumulated depreciation for classes of assets?

What is the approach GAAP takes for the amortization of intangible assets?

What additional information does GAAP require for the amortization expense of intangible assets over a subsequent five-year period?

How does the treatment of developing intellectual property assets differ between GAAP and international standards?