Page 35 - FINAL CFA I SLIDES JUNE 2019 DAY 8
P. 35
Session Unit 8:
LOS 29.l: Describe the financial statement presentation of and disclosures 29. Long-lived Assets
relating to property, plant, and equipment and intangible assets. p.228
IFRS US GAAP
.
For PPE & Intangible Assets: For PP&E & Intangible Assets disclosures:
• Basis for measurement (usually historical cost). • Depreciation expense by period.
• Useful lives or depreciation rate. • Balances of major classes of assets by nature and
• Gross carrying value and accumulated depreciation. function, such as land, improvements, buildings,
• Reconciliation of carrying amounts from the machinery, and furniture.
beginning of the period to the end of the period. • Accumulated depreciation by major classes or in total.
•
General description of depreciation methods used.
The firm must also disclose: tanties
• Title restrictions and assets pledged as collateral.
• Agreements to acquire PP&E in the future.
If the revaluation (fair value) model is used, disclose:
• The revaluation date.
• How fair value was determined. ? Not allowed, under US GAAP!
• Carrying value using the historical cost model.
For intangible assets, disclose whether useful live is For intangible assets, disclose an estimate of amortization
finite or indefinite expense for the next five years.
For impairments (PPE & Intangible Assets), disclose For impairments (PPE & Intangible Assets), disclose
• Amounts of impairment losses and reversals by asset class. • A description of the impaired asset.
• Where the losses/loss reversals are recognized in the IS. • Circumstances that caused the impairment.
• Circumstances that caused the impairment loss or reversal. • How fair value was determined.
• The amount of loss.
• Where the loss is recognized in the income statement.
