“Depreciation, Depletion, and Amortization”
Depreciation, Depletion, and Amortization
Mar 5, 2013
- 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.
- Type of Material:
- YouTube presentation
- Recommended Uses:
- 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.
- Technical Requirements:
- Identify Major Learning Goals:
- 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.
- 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.
- 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.
- 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.
- Creative Commons: