This module provides an introduction to the accounting for the amortization of long-lived assets. Calculations and journal entries are illustrated for depreciation, depletion, and amortization expense.
Students will understand:
1) how to compute depreciation (straight-line, and double-declining balance methods), depletion, and amortization for long-lived assets.
2) how to record journal entries for depreciation of plant assets, amortization of intangibles, and depletion of natural resources.
Target Student Population:
High school accounting course or introductory financial accounting at the lower division undergradue college/university level especially for non-accounting students.
Prerequisite Knowledge or Skills:
Basic understanding of the double-entry accounting concept.
Type of Material:
As a resource in an on-line course or outside of class for review. If used in class, once the vidieo is shown, teams could solve problems requiring journalizing the necessary transactions.
Evaluation and Observation
This video presentation explains the basic accounting concepts of depreciaiton, amortization, and depletion for long-lived assets. Both the straight-line and double-declining balance methods are illustrated as well as the partial year calculation for the straight-line method. Journal entries are also presented as well as the concept of book value.
The video begins with an overview of all three concepts and then provides more detailed illustrations later in the presentation. It also provides a nice explanation of the concepts applicable for a high school or undergraduate principles of financial accounting course.
Content is accurate, current, and relevant.
The video is based on US GAAP and may not be consistent with the application of IFRS.
The video is not not self-contained in that no associated assignments exist.
Toward the latter part of the video, impairment of an asset is mentioned, but the term is not explained.
Potential Effectiveness as a Teaching Tool
The presenter clearly states the purpose of the presentation and provides a nice progression through each of the depreciation, amortization and depletion concepts.
Concepts are reinforced progressively building on prior discussions.
Much can be learned from viewing this very concise presentation of just over 16 minutes.
The video can be used in a variety of principles of accounting classes as well as a MBA class for non accounting majors.
The content will enhance the instruction and learning of traditional concepts included either for an online or on-campus course.
The need for understanding double-entry accounting as a prerequisite is not indicated.
The presentation ends abruptly and lacks a culminating summary.
The video also lacks any type of formative assessment.
Ease of Use for Both Students and Faculty
The slides are professionally designed and pleasing to the eye. The inclusion of graphics to add interest is excellent as well.
The pace selected to progress throught he content is excellent.
The spreakers voice and tonal quality makes for easy listening. In addition, rhetorical questioning is used every now and then in attempt to engage the learner.
The video is easy to follow and the time requirement is minimal.
This resource would be more complete if students could test their understanding of the concepts and perform some calculations.
As with any video lack of interactivity to foster active learning is always an issue.