Module VI· Capex & Depreciation ScheduleIntermediate
Question
How do you build a PP&E BASE block?
Answer
Use the roll-forward: beginning PP&E + capex - depreciation - disposals +/- FX / other = ending PP&E. Link capex to the cash flow statement, depreciation to the income statement and cash flow add-back, and ending PP&E to the balance sheet. BASE stands for beginning balance, additions, subtractions, ending balance.