Disclosures Related to PPE and Intangible Assets

Disclosures under IFRS

Disclosures for PPE

  • Measurement basis
  • Depreciation method
  • Estimated useful lives or equivalent depreciation rate
  • Gross carrying amount and accumulated depreciation
  • Reconciliation of carrying amounts at beginning and end

The following additional disclosures are required:

  • Restriction on title and pledges as collateral of property
  • Equipment and contractual agreements to acquire PPE

If revaluation model is used, the firm is required to disclose:

  • Date of revaluation
  • How fair value was determined
  • Carrying amount under cost method
  • Revaluation surplus

Disclosures for Intangible Assets

  • Whether indefinite or finite
  • If finite life:
    • Useful life of each intangible asset
    • Amortization method used
    • Gross carrying amount and accumulated amortization
    • Reconciliation of carrying amounts at beginning and end
  • If indefinite asset:
    • Disclose carrying amount of asset and why it is considered indefinite
  • Restriction on title and pledges as collateral of intangible assets
  • Equipment and contractual agreements to acquire intangible assets

Disclosures for Impaired Assets

  • For each asset class, the amount of impairment losses
  • Reversal of impairment losses recognized in the period
  • Where impairment losses and loss reversals are recognized in the income statement
  • Main events and circumstances leading to recognition of impairment losses

Disclosures under US GAAP

Disclosures for PPE and Intangible Assets are same

  • Gross carrying amount and accumulated depreciation for major asset classed or in total
  • General description of depreciation methods used
  • Aggregate amortization expense
  • Estimated amortization expense next 5 years

Disclosures for Impaired Assets

There is no reversal of impairment losses, so no related disclosures. The firm must disclose:

  • Description of impaired asset
  • Reason for impairment
  • Method for determining fair value
  • Amount of impairment loss
  • Where impairment losses are recognized in the income statement

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