FAF3
Syllabus D. Recording Transactions And Events D4. Tangible non-current assets.

D4i. Non-current asset balances and movements 8 / 9

Syllabus D4i)

Illustrate how non-current asset balances and movements are disclosed in financial statements.

For each class of property, plant, and equipment , disclose

  • basis for measuring carrying amount

  • depreciation method(s) used

  • useful lives or depreciation rates

  • gross carrying amount and accumulated depreciation and impairment losses

  • reconciliation of the carrying amount at the beginning and the end of the period, showing

    o additions 
    o disposals 
    o acquisitions through business combinations 
    o revaluation increases or decreases 
    o impairment losses 
    o reversals of impairment losses 
    o depreciation 
    o net foreign exchange differences on translation 
    o other movements

If property, plant, and equipment is stated at revalued amounts, certain additional disclosures are required

  • the effective date of the revaluation

  • whether an independent valuer was involved

  • the methods and significant assumptions used in estimating fair values

  • for each revalued class of property, the carrying amount that would have been recognised had the assets been carried under the cost model

  • the revaluation surplus, including changes during the period and any restrictions on the distribution of the balance to shareholders

land &
building
$
machinery

$
office
equipment
$
total

$
cost or valuation
at 1 january 2010 50000 10000 8000 68000
revaluation surplus 12000 2000 2000 16000
additions in year 4000 4000 ---- 8000
disposals in year -1000 -1000 ---- -2000
-------- -------- -------- --------
at 31 december 2010 65000 15000 10000 90000
===== ===== ===== =====
depreciation
at 1 january 2010 16000 6000 4000 26000
charge for year 4000 3000 2000 9000
eliminated on disposals -500 -500 ---- -1000
-------- -------- -------- --------
at 31 december 2010 19500 8500 6000 34000
===== ===== ===== =====
carrying amount
at 31 december 2010 45500 6500 4000 56000
===== ===== ===== =====
at 1 january 2010 34000 4000 4000 42000