A fixed asset roll-forward reconciles property, plant and equipment from the beginning to the end of the period. Enter each asset class to roll forward cost and accumulated depreciation, calculate net book value and measure gains or losses on disposals.
How it works
Roll forward property, plant and equipment by asset class: beginning cost, additions and disposals, accumulated depreciation and net book value, with the gain or loss on disposals.
Ending cost = Beginning cost + Additions − Disposals at cost
Ending accumulated depreciation = Beginning + Depreciation expense − Depreciation on disposals
Net book value = Ending cost − Ending accumulated depreciation
Gain (loss) on disposal = Proceeds − (Disposals at cost − Accumulated depreciation on disposals)Common uses
- Month-end and year-end close reconciliations
- Audit support and PP&E footnote disclosures
- Capital planning and asset-age analysis
Worked example
The calculator above opens with this example. Change any input to see the results update instantly, or select Reset to return to these figures.
| Asset classes | Land | 1,200,000 | 0 | 0 | 0 | 0 | 0 Buildings | 8,400,000 | 350,000 | 0 | 2,940,000 | 215,000 | 0 Medical equipment | 5,600,000 | 820,000 | 410,000 | 3,180,000 | 690,000 | 385,000 IT equipment | 1,350,000 | 240,000 | 180,000 | 940,000 | 260,000 | 180,000 Vehicles | 420,000 | 65,000 | 58,000 | 255,000 | 61,000 | 52,000 |
| Proceeds from disposals (optional) | $24,000 |
| Ending net book value | $9,873,000 |
| Additions | $1,475,000 |
| Depreciation expense | $1,226,000 |
| Net book value of disposals | $31,000 |
| Loss on disposal | $7,000 |
| Accumulated depreciation % of cost | 44.5% |
Check: Beginning NBV $9,655,000 + Additions − Depreciation − NBV of disposals = $9,873,000.
Interpreting the results
- Reconcile the roll-forward totals to the general ledger and to the fixed asset subledger every period.
- Land is not depreciated; construction in progress is not depreciated until the asset is placed in service.
- A rising accumulated-depreciation ratio signals an aging asset base and future replacement capital needs.
Frequently asked questions
What is a fixed asset roll-forward?
A fixed asset roll-forward starts with beginning balances, adds acquisitions, subtracts disposals and depreciation, and arrives at ending balances for cost, accumulated depreciation and net book value. Auditors use it to tie the general ledger to the asset subledger.
How is the gain or loss on a disposal calculated?
The gain or loss equals the proceeds received minus the net book value of the assets disposed of, which is their original cost less accumulated depreciation at the date of disposal.
What does accumulated depreciation as a percentage of cost show?
It indicates how far through their useful lives the assets are. A rising percentage signals an aging asset base and the need for replacement capital spending.
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