1.1.3 Property Plant and Equipment

Issue

The property, plant and equipment element has been used in a number of cases to exclude capitalized leases.  Although not specifically stated, the calculation linkbase in the taxonomy indicates that capitalized leases are included in the total of property, plant and equipment.   A number of companies have created extensions for property, plant and equipment including capitalized leases, and other companies have created extensions for property, plant and equipment excluding capitalized leases.

Recommendation

If total property, plant and equipment in the financial statements includes capitalized leases, then the element for property, plant and equipment should be used.  If the company does not have capitalized leases, then this element should also be used.  In the case when the company separately discloses property, plant and equipment from capitalized leases, the element for property, plant and equipment excluding capitalized leases should be used.