Platform to discuss plant, property, and equipment (PP&E) notes ...

The following post is intended to use this as a platform to discuss high level points and notes on PP&E:

• A non-monetary exchange is generally measured based on the fair market value.  When the transaction lacks commercial substance the exchange should be measured based on the reported amount of the non-monetary asset surrendered.
• Having determined the division is the lowest level of identifiable cash flows,  in performing impairment tests, one may perform a recoverability test on the carrying amount of the division's assets.
• Donating land as an incentive for building a factory, the nonmonetary transaction should be accounted via APIC (additional paid-in capital). 
• Impairment testing for tangible assets is a two-step process - specifically, with the first step of the process, if undiscounted cash flows are greater than the carrying amounts of the asset, then there is no need for the asset to be impaired. 
• The capitalized interest is based on the payments made for the land and progress payments to the contractor based on the amount of the year that these payments were outstanding - sum/total of total weighted-average expenditures.
• A gain may be determined by the proportion of cash received to the total consideration.
• Proper accounting for losses when nonmonetary assets are exchanged for other nonmonetary assets - A loss is recognized immediately, assets received should not be valued at more than their cash equivalent price.
•  IFRS will allow the restoration of an impairment loss, but U.S. GAAP will not allow the restoration.
• Cash received is taken into consideration in determining the fair value of the equipment surrendered, but not taken into consideration in determining the fair value of the equipment received.
• The total costs to be depleted include both the cost of the land + the cost to restore the land. The total cost minus the land value after restoration is the depletable basis. The depletable base over the resource will be the per unit depletion per resource.  
• The cost of plant assets includes all expenditures necessary to acquire the asset and prepare it for its intended use. The cost of land includes purchase price, acquisitions based fees (legal, commissions, title insurance), and the costs of preparing the land for use (surveying, grading, filling, draining, and clearing). The cost of tearing down an existing building is included in the cost of the land.
• FASB ASC 835-20-25-5 provides: "The capitalization period shall end when the asset is substantially complete and ready for its intended use."
• If actual interest cost incurred is greater than the avoidable interest, the amount of interest that can be capitalized is avoidable interest. 
• When a rearrangement adds to the overall efficiency of the production process for equipment - should be capitalized into the cost of the asset.
• With a higher book value, a sale at a loss would be a higher, and a sale at a gain would be a lower gain. For instance, if you sell a property at 50 under one depreciation method book value of 40, gain is 10. Where if the book value is 35, gain is 15. So, gains decrease with higher book value. If you sell a property at 30, using the same book value, you have a loss of 20 vs. 5, therefore, losses are increased.