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ACCA Applied Knowledge · Financial Accounting · Disclosure notes

Which of the following is correct about the disclosure of property, plant and equipment under IAS 16 for each class of asset?

IAS 16 requires disclosure of the depreciation methods and useful lives or rates used for each class of property, plant and equipment, along with a carrying amount reconciliation. Supplier details are not required and depreciation information cannot be left out.

  1. AThe depreciation methods and useful lives or rates used must be disclosedCorrect
  2. BOnly the closing cost need be shown, with no depreciation information
  3. CDepreciation methods need only be disclosed for intangible assets
  4. DDetails of the individual suppliers of each asset must be disclosed

Explanation

IAS 16 requires disclosure of the measurement basis, depreciation methods and useful lives or depreciation rates for each class, plus a reconciliation of carrying amounts. Supplier names are not required, and depreciation information cannot be omitted.

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