@PROFDOCDIGITALLIBRARIES
CHAPTER 11
DEPRECIATION, IMPAIRMENT, AND
DISPOSITION
Learning Objectives
1. Understand the importance of depreciation, impairment, and
disposition from a business perspective.
PR
2. Explain the concept of depreciation and identify the factors to
consider when determining depreciation charges.
3. Identify how depreciation methods are selected; calculate and
recognize depreciation using the straight-line, diminishing
O
balance, activity, and other methods.
4. Explain the accounting issues for depletion of mineral
resources.
FD
5. Explain and apply the accounting procedures for partial
periods and a change in depreciation rate.
6. Explain the issues and apply the accounting standards for
capital asset impairment under both IFRS and ASPE.
O
7. Account for derecognition of property, plant, and equipment
and explain and apply the accounting standards for long-lived
C
assets that are held for sale.
8. Describe the types of disclosures required for property, plant,
and equipment and analysis of investment in capital assets.
9. Identify differences in accounting between IFRS and ASPE,
and what changes are expected in the near future.
10. Calculate capital cost allowance in routine and non-routine
situations.
, @PROFDOCDIGITALLIBRARIES
Summary of Questions by Learning Objectives and Bloom’s Taxonomy
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT
Brief Exercises
1. 1,8 C 6. 3 AP 11. 4 AP 16. 6 C 21. 7 AP
2. 2 AP 7. 3 AP 12. 5 AP 17. 6 AP 22. 7 AP
3. 2 AP 8. 3 AP 13. 6 AP 18. 6 AP 23 8 AN
4. 3 AP 9. 3,10 AP 14. 6 C 19. 6 C 24 10 AP
5. 3 AP 10. 4 AP 15. 6 AP 20. 7 AP
Exercises
1. 1,2,3 C 8. 3 AP 15. 4 AP 22. 6 AP 29. 8 AN
PR
2. 2,3 AP 9. 3 AP 16. 5 AP 23. 6,7,8 AP 30. 3,10 AP
3. 3 AP 10. 3 AP 17. 5 AP 24. 2,3,7 AP 31. 10 AP
4. 3,5,10 AP 11. 3,5 AP 18. 5 AP 25. 3,5,7 AP 32. 10 AP
5. 2,3 AP 12. 3,5 AP 19. 6 AP 26. 7 AP
6. 3 AP 13. 4 AP 20. 6 AP 27. 7 AP
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7. 3 AP 14. 4 AP 21. 6 AP 28. 7 AP
Problems
FD
1. 3,5,10 AP 5. 3,10 AP 9. 2,3 AP 13. 3 AP 17. 3,5,6 AP
2. 3 AP 6. 3,5,7 AP 10. 3 AP 14. 3,6,8 AP 18. 10 AP
3. 3,5,10 AP 7. 3,5,7 AP 11. 3,4 AP 15. 7 AP 19. 8,10 AP
4. 3,5,7 AP 8. 2,3 AP 12. 3,4,7 AP 16. 3 AP
O
Cases
IC1. 7,8 AN IC 2. 1,6 AN
Research and Analysis
C
1. 8 AP 2. 3,8 AP 3. 3,4,6 AN 4. 1,8 AN 5. 6,8 AP
,@PROFDOCDIGITALLIBRARIES
Legend: The following abbreviations will appear throughout the solutions
manual file.
LO Learning objective
BT Bloom's Taxonomy
K Knowledge
C Comprehension
AP Application
AN Analysis
S Synthesis
E Evaluation
Difficulty: Level of difficulty
PR
S Simple
M Moderate
C Complex
Time: Estimated time to complete in minutes
AACSB Association to Advance Collegiate Schools of Business
O
Communication Communication
Ethics Ethics
Analytic Analytic
FD
Tech. Technology
Diversity Diversity
Reflec. Thinking Reflective Thinking
CPA CM CPA Canada Competency Map
O
Ethics Professional and Ethical Behaviour
PS and DM Problem-Solving and Decision-Making
C
Comm. Communication
Self-Mgt. Self-Management
Team & Lead Teamwork and Leadership
Reporting Financial Reporting
Stat. & Gov. Strategy and Governance
Mgt. Accounting Management Accounting
Audit Audit and Assurance
Finance Finance
Tax Taxation
DAIS Data Analytics and Information Systems
ASSIGNMENT CLASSIFICATION TABLE
, @PROFDOCDIGITALLIBRARIES
Brief
Topics Exercises Exercises Problems
1. Concept of 1 1
depreciation.
2. Factors in 2, 3 1, 2, 5, 24 1, 2, 5, 6, 8,
determining 13, 16
depreciation charges.
3. Meaning and choice 4, 5, 6, 7, 1, 2, 3, 4, 5, 6, 1, 2, 4, 5, 6, 7,
of methods and. 8, 9 7, 8, 9, 10, 11, 8, 9, 10, 16,
calculation of 12, 24, 25, 30 17, 19
depreciation
PR
4. Depletion. 10, 11 13, 14, 15 11, 12
5. Errors; Changes in 11 4, 11, 12, 16, 3, 6, 7, 13, 17
estimates. 17, 18, 25
6. Impairment. 12, 13, 14, 19, 20, 21, 22, 14, 17
O
15, 16, 17, 23
18, 19
7. Assets held for sale 20, 21,22 23, 24, 25, 26, 4, 7, 15, 17
FD
and dispostions. 27, 28
8. Presentation 1, 23 23, 29 8, 14, 15, 17,
disclosures and 19
analysis
O
9. Differences between
ASPE and IFRS.
C
*10. Tax depreciation 9, 24 4, 30, 31, 32 1, 3, 5, 18,
(CCA).* 19
*This material is covered in an Appendix to the chapter.
CHAPTER 11
DEPRECIATION, IMPAIRMENT, AND
DISPOSITION
Learning Objectives
1. Understand the importance of depreciation, impairment, and
disposition from a business perspective.
PR
2. Explain the concept of depreciation and identify the factors to
consider when determining depreciation charges.
3. Identify how depreciation methods are selected; calculate and
recognize depreciation using the straight-line, diminishing
O
balance, activity, and other methods.
4. Explain the accounting issues for depletion of mineral
resources.
FD
5. Explain and apply the accounting procedures for partial
periods and a change in depreciation rate.
6. Explain the issues and apply the accounting standards for
capital asset impairment under both IFRS and ASPE.
O
7. Account for derecognition of property, plant, and equipment
and explain and apply the accounting standards for long-lived
C
assets that are held for sale.
8. Describe the types of disclosures required for property, plant,
and equipment and analysis of investment in capital assets.
9. Identify differences in accounting between IFRS and ASPE,
and what changes are expected in the near future.
10. Calculate capital cost allowance in routine and non-routine
situations.
, @PROFDOCDIGITALLIBRARIES
Summary of Questions by Learning Objectives and Bloom’s Taxonomy
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT
Brief Exercises
1. 1,8 C 6. 3 AP 11. 4 AP 16. 6 C 21. 7 AP
2. 2 AP 7. 3 AP 12. 5 AP 17. 6 AP 22. 7 AP
3. 2 AP 8. 3 AP 13. 6 AP 18. 6 AP 23 8 AN
4. 3 AP 9. 3,10 AP 14. 6 C 19. 6 C 24 10 AP
5. 3 AP 10. 4 AP 15. 6 AP 20. 7 AP
Exercises
1. 1,2,3 C 8. 3 AP 15. 4 AP 22. 6 AP 29. 8 AN
PR
2. 2,3 AP 9. 3 AP 16. 5 AP 23. 6,7,8 AP 30. 3,10 AP
3. 3 AP 10. 3 AP 17. 5 AP 24. 2,3,7 AP 31. 10 AP
4. 3,5,10 AP 11. 3,5 AP 18. 5 AP 25. 3,5,7 AP 32. 10 AP
5. 2,3 AP 12. 3,5 AP 19. 6 AP 26. 7 AP
6. 3 AP 13. 4 AP 20. 6 AP 27. 7 AP
O
7. 3 AP 14. 4 AP 21. 6 AP 28. 7 AP
Problems
FD
1. 3,5,10 AP 5. 3,10 AP 9. 2,3 AP 13. 3 AP 17. 3,5,6 AP
2. 3 AP 6. 3,5,7 AP 10. 3 AP 14. 3,6,8 AP 18. 10 AP
3. 3,5,10 AP 7. 3,5,7 AP 11. 3,4 AP 15. 7 AP 19. 8,10 AP
4. 3,5,7 AP 8. 2,3 AP 12. 3,4,7 AP 16. 3 AP
O
Cases
IC1. 7,8 AN IC 2. 1,6 AN
Research and Analysis
C
1. 8 AP 2. 3,8 AP 3. 3,4,6 AN 4. 1,8 AN 5. 6,8 AP
,@PROFDOCDIGITALLIBRARIES
Legend: The following abbreviations will appear throughout the solutions
manual file.
LO Learning objective
BT Bloom's Taxonomy
K Knowledge
C Comprehension
AP Application
AN Analysis
S Synthesis
E Evaluation
Difficulty: Level of difficulty
PR
S Simple
M Moderate
C Complex
Time: Estimated time to complete in minutes
AACSB Association to Advance Collegiate Schools of Business
O
Communication Communication
Ethics Ethics
Analytic Analytic
FD
Tech. Technology
Diversity Diversity
Reflec. Thinking Reflective Thinking
CPA CM CPA Canada Competency Map
O
Ethics Professional and Ethical Behaviour
PS and DM Problem-Solving and Decision-Making
C
Comm. Communication
Self-Mgt. Self-Management
Team & Lead Teamwork and Leadership
Reporting Financial Reporting
Stat. & Gov. Strategy and Governance
Mgt. Accounting Management Accounting
Audit Audit and Assurance
Finance Finance
Tax Taxation
DAIS Data Analytics and Information Systems
ASSIGNMENT CLASSIFICATION TABLE
, @PROFDOCDIGITALLIBRARIES
Brief
Topics Exercises Exercises Problems
1. Concept of 1 1
depreciation.
2. Factors in 2, 3 1, 2, 5, 24 1, 2, 5, 6, 8,
determining 13, 16
depreciation charges.
3. Meaning and choice 4, 5, 6, 7, 1, 2, 3, 4, 5, 6, 1, 2, 4, 5, 6, 7,
of methods and. 8, 9 7, 8, 9, 10, 11, 8, 9, 10, 16,
calculation of 12, 24, 25, 30 17, 19
depreciation
PR
4. Depletion. 10, 11 13, 14, 15 11, 12
5. Errors; Changes in 11 4, 11, 12, 16, 3, 6, 7, 13, 17
estimates. 17, 18, 25
6. Impairment. 12, 13, 14, 19, 20, 21, 22, 14, 17
O
15, 16, 17, 23
18, 19
7. Assets held for sale 20, 21,22 23, 24, 25, 26, 4, 7, 15, 17
FD
and dispostions. 27, 28
8. Presentation 1, 23 23, 29 8, 14, 15, 17,
disclosures and 19
analysis
O
9. Differences between
ASPE and IFRS.
C
*10. Tax depreciation 9, 24 4, 30, 31, 32 1, 3, 5, 18,
(CCA).* 19
*This material is covered in an Appendix to the chapter.
