Disclosures by class of assets and by segment

Learning objectives

• Identify the disclosures by class of assets (losses and reversals in profit or loss and in other comprehensive income, line items affected) and by segment.L2, L3

Normative references

• IAS 36 §126For each class of assets, disclose the impairment losses and reversals recognised in profit or loss (with the line items concerned) and those recognised in other comprehensive income for revalued assets.
• IAS 36Defines a class of assets as a grouping of assets of similar nature and use.
• IAS 36 §128The disclosures in paragraph 126 may be presented with other information disclosed for the class of assets, for example in the reconciliation of the carrying amounts of property, plant and equipment at the beginning and end of the period required by IAS 16.
• IAS 36 §129An entity that reports segment information in accordance with IFRS 8 discloses, for each reportable segment, the impairment losses and reversals for the period, in profit or loss and in other comprehensive income.
• IAS 36For the aggregate impairment losses and reversals for the period not disclosed in accordance with paragraph 130, disclose the main classes of assets affected and the main events and circumstances that led to their recognition.

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

8 questions

• For each class of assets, what information about impairment losses and their reversals must an entity disclose?L2
• When presenting information by class of assets, how is a class of assets defined?L2
• Tamsel revalues its land and measures its machinery at cost. In 20X2, it recognised impairment losses and reversals on both classes. Which of the following must it disclose for each class of assets?L2
• Norlis is preparing its note on property, plant and equipment, which contains the reconciliation of opening and closing carrying amounts. Where may it present the year's losses and reversals broken down by class of assets?L3
• The Valtrion group presents segment information under IFRS 8 with three reportable segments. In 20X3 it recognised impairment losses and reversals, in profit or loss and, for revalued assets, in other comprehensive income. Which of the following must it disclose for each reportable segment?L3
• Pelvane measures its office buildings under the revaluation model and its machinery at cost. In 20X2, an impairment loss of 50,000 was recognised on the buildings, of which 30,000 in other comprehensive income and 20,000 in profit or loss (split given), in the line item Depreciation, amortisation and impairment. A reversal of 8,000 was recognised in profit or loss on the machinery, in the line item Other income. For the Office buildings class, the draft note states only: impairment loss of 20,000 in profit or loss. What must be added?L3
• In 20X3, the Ostrel group recognised several impairment losses on various assets, totalling 90,000: 60,000 on store fittings after shops were closed and 30,000 on software that became obsolete following a change in technology. These losses are not covered by the detailed disclosures required for each loss (given). What information must it disclose for these losses as a whole?L3
• Ambrel does not present segment information under IFRS 8 (given). In 20X2 it recognised impairment losses on its warehouses and vehicles. What is its position regarding disclosures by segment and by class of assets?L3