ACCA Applied Knowledge · Financial Accounting · Disclosure notes
Under IAS 16, which of the following must be disclosed in the notes for each class of property, plant and equipment?
Depreciation methods and the useful lives or depreciation rates used must be disclosed for each class of property, plant and equipment under IAS 16. Supplier names, forecast resale values and insurance premiums are not required note disclosures.
- AThe depreciation methods used and the useful lives or depreciation rates appliedCorrect
- BThe names of the suppliers from whom each asset was purchased
- CThe forecast resale value of each asset at the end of the next five years
- DThe insurance premium paid on each asset during the year
Explanation
IAS 16 requires disclosure by class of the measurement bases, depreciation methods, useful lives or rates, and the gross carrying amount and accumulated depreciation. Supplier names, forecast resale values over five years and insurance premiums are not required disclosures.
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