Reconciliation of carrying amount

Learning objectives

• Prepare the reconciliation of the carrying amounts of a class.L2, L3
• Identify the movements to be presented in the reconciliation.L2

Normative references

• IAS 38 §118By class, distinguishing between internally generated and other intangible assets: finite or indefinite useful lives, useful lives or amortisation rates, methods, gross carrying amounts and accumulated amounts, line items of the statement of comprehensive income, reconciliation of carrying amounts (e: additions by origin, assets held for sale and other disposals, revaluations, impairment losses and reversals, amortisation for the period, exchange differences, other changes).

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

8 questions

• An entity prepares the reconciliation between the opening and closing carrying amounts of a class of intangible assets. Which of these items appears in it?L2
• Which of these items is NOT a movement in the reconciliation between the opening and closing carrying amounts of a class of intangible assets?L2
• During the year, Brévaline sold for 55,000 a licence whose carrying amount was 40,000 at the date of sale, giving a gain of 15,000. Which amount must appear on the disposals line in the reconciliation of carrying amounts of the Licences class?L3
• Dorvane's Software class has an opening carrying amount of {opening_carrying_amount}. During the year: additions of {additions}, amortisation of {amortisation}, impairment losses of {impairment_losses} and disposals at a carrying amount of {disposals}. What closing carrying amount must be shown in the reconciliation?L2
• The international Calvérac group is preparing the reconciliation for its Technologies class. Opening carrying amount: {opening_carrying_amount}. Movements for the year: separate acquisitions {separate_acquisitions}, capitalised internal development {internal_development}, additions through business combinations {business_combinations}, assets classified as held for sale {held_for_sale}, amortisation {amortisation}, impairment losses {impairment_losses}, reversals of impairment losses {impairment_reversals} and positive net exchange differences {exchange_differences}. Calculate the closing carrying amount.L3
• Pirmond's intern prepared the reconciliation for the Patents class but forgot the line for amortisation for the period. Data: opening carrying amount {opening_carrying_amount}, additions {additions}, disposals at a carrying amount of {disposals}, closing carrying amount per the trial balance {closing_carrying_amount}. No other movement occurred. Which amortisation amount must appear in the reconciliation?L3
• For its Brands and licences class, the Brazilian subsidiary of the Ystrane group reports an opening carrying amount of {opening_carrying_amount} and a closing carrying amount of {closing_carrying_amount}. The known movements are amortisation of {amortisation}, impairment losses of {impairment_losses} and negative net exchange differences of {exchange_differences}. There were no disposals and no revaluations. Which amount of additions must be shown for the reconciliation to balance?L3
• Faulmère applies the revaluation model to its Transferable taxi licences class. During the year, the carrying amount of the class increased by 30,000 as a result of a revaluation recognised in other comprehensive income. How is this movement dealt with in the reconciliation of carrying amounts?L3