I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

Tangible non-current assets (Chapter 8) 

A reconciliation of the opening and closing amounts at the beginning and end of the period, as 

shown below (IAS 16, para. 73). 

PROPERTY, PLANT AND EQUIPMENT NOTE 

  

Land 

and 

Plant 

and 

 Total 

buildings 

equipment 

 

$ 

$ 

$ 

Cost or valuation 

 

 

 

  At 1 January 20X4 

 50,000 

 40,000 

 10,000 

  Revaluation surplus 

 12,000 

 12,000  

– 

  Additions in year 

 4,000  

– 

 

4,000 

  Disposals in year 

  (1,000) 

          – 

  (1,000) 

  At 31 December 20X4 

 65,000 

 52,000 

 13,000 

Depreciation 

 

 

 

  At 1 January 20X4 

 16,000 

 10,000 

 6,000 

  Charge for year 

 4,000 

 1,000 

 3,000 

  Eliminated on disposals 

     (500) 

          – 

    (500) 

  At 31 December 20X4 

 19,500 

 11,000 

  8,500 

Carrying amount 

 

 

 

  At 31 December 20X4 

 45,500 

 41,000 

  4,500 

  At 1 January 20X4 

 34,000 

 30,000 

  4,000 

As well as the reconciliation above, the financial statements should disclose the following. 

(i) 

An accounting policy note should disclose the measurement bases used for determining the 

amounts at which depreciable assets are stated, along with the other accounting policies. 

(ii) 

For each class of property, plant and equipment: 

 

Depreciation methods used 

 

Useful lives or the depreciation rates used 

 

Total depreciation allocated for the period 

 

Gross amount of depreciable assets and the related accumulated depreciation at the 

beginning and end of the period 

(IAS 16, para. 73) 

 EXAM FOCUS POINT 

ACCA's examining team has reported that questions on this topic have not been very well answered in 

previous exams. In particular, students do not appear to know the purpose or content of the notes. You 

should expect to see a question on this area in your exam. You are expected to have a detailed 

knowledge of the disclosures given below, so make sure you learn these.  

BPP Tutor Toolkit Copy

---

CHAPTER 20  

//

  PREPARATION OF FINANCIAL STATEMENTS FOR COMPANIES 

 

357 

(iii)   For revalued assets:  

 

Effective date of the revaluation 

 Whether 

an 

independent valuer was involved 

 

Carrying amount of each class of property, plant and equipment that would have 

been included in the financial statements had the assets been carried at cost less 

depreciation 

 

Revaluation surplus, indicating the movement for the period and any restrictions on 

the distribution of the balance to shareholders 

(IAS 16, para. 77) 

(b) 

Intangible non-current assets (Chapter 9) 

A reconciliation of the carrying amount of intangible assets at the beginning and end of the 

period, as shown below. 

INTANGIBLE ASSETS NOTE 

  

Development 

 

 

 Total 

costs 

Patents 

 

$ 

$ 

$ 

Cost  

 

 

 

  At 1 January 20X4 

 40,000 

 30,000 

 10,000 

  Additions in year 

 19,000 15,000   

4,000 

  Disposals in year 

  (1,000) 

 

 

         – 

  (1,000) 

  At 31 December 20X4 

 58,000 

 

 

45,000 

 13,000 

Amortisation 

 

 

 

  At 1 January 20X4 

 11,000 

 5,000 

 6,000 

  Charge for year 

 4,000 

 1,000 

 3,000 

  Eliminated on disposals 

     (500) 

  

 

       – 

     (500) 

  At 31 December 20X4 

 14,500 

  

 

6,000 

   8,500 

Carrying amount 

 

 

 

  At 31 December 20X4 

 43,500 

 39,000 

   4,500 

  At 1 January 20X4 

 29,000 

 25,000 

   4,000 

As well as the reconciliation above, the financial statements should disclose the following. 

(i) The 

accounting policies for intangible assets that have been adopted 

(ii) For 

each class of intangible assets (including development costs), disclosure is required of 

the following: 

 

The method of amortisation used 

 

The useful life of the assets or the amortisation rate used 

 

The gross carrying amount, the accumulated amortisation and the accumulated 

impairment losses as at the beginning and end of the period 

 

The carrying amount of internally generated intangible assets 

 

The line item(s) of the statement of profit or loss in which any amortisation of 

intangible assets is included 

(IAS 38, para. 118) 

(c) 

Provisions (Chapter 11) 

Disclosures required in the financial statements for provisions fall into two parts. 

(i) 

Disclosure of details of the change in carrying amount of a provision from the beginning to 

the end of the year, including additional provisions made, amounts used and other 

movements. 

(ii) 

For each class of provision, disclosure of the background to the making of the provision 

and the uncertainties affecting its outcome, including: 

1 

A brief description of the nature of the provision and the expected timing of any 

resulting outflows relating to the provision. 

BPP Tutor Toolkit Copy

---