IAS 16Chapter 11Lesson 1
Disclosure
Step 1 of 8Learning objectives
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What the note on property, plant and equipment must say, class by class: measurement bases, depreciation methods, useful lives or rates, gross carrying amounts and accumulated depreciation, and a full reconciliation of the carrying amount from opening to closing. Added to this are restrictions and pledges, expenditure on assets under construction, commitments to acquire assets, proceeds obtained before intended use, changes in estimates, revaluations, the cross-reference to IAS 36 and some information that is merely encouraged.
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Learning objectives
- Identify the information to disclose for each class of property, plant and equipment and draft the 'accounting policies' section of the note.
- Build a reconciliation of the carrying amount from opening to closing and detect an inconsistency in it.
- Spot in a file the restrictions, pledges, construction expenditure, commitments and proceeds before intended use to be disclosed.
- Prepare the information on a change in estimate and on a revalued class, and locate the information that falls under IAS 36.
- Distinguish mandatory disclosures from disclosures that are merely encouraged.