Presentation and Disclosure
Reporting PP&E
PP&E is presented as a noncurrent asset on the balance sheet, typically at historical cost less accumulated depreciation. Companies disclose depreciation methods, useful lives, and significant additions or disposals in the notes to the financial statements.
Tip
Always distinguish between historical cost, accumulated depreciation, and carrying amount when analyzing PP&E.
Summary
PP&E is presented net of accumulated depreciation, with detailed disclosures supporting financial statement users.