Carrying amount reconciliation

Learning objectives

• Prepare the reconciliation of the carrying amount at the beginning and end of the period.L2, L3
• Analyse a reconciliation to detect an inconsistency.L3, L4

Normative references

• IAS 16 §73By class: measurement bases for the gross carrying amount, depreciation methods, useful lives or depreciation rates, gross carrying amount and accumulated depreciation (aggregated with accumulated impairment losses) at the beginning and end of the period, and a reconciliation of the carrying amount: additions; assets held for sale (IFRS 5) and other disposals; business combinations; revaluations and impairment losses in OCI; impairment losses in profit or loss; reversals in profit or loss; depreciation; net exchange differences on translation; other changes.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• The carrying amount reconciliation prepared for the notes shows: opening 800,000; additions 150,000; depreciation for the year (90,000); disposals (70,000); closing 790,000. The statement of financial position shows a closing carrying amount of 835,000. The assets disposed of had a cost of 70,000 and accumulated depreciation of 45,000. What causes the difference?L4