Disclosures

In this lesson

1. 0:00 Property, plant and equipment disclosure overview
2. 0:24 Statement of changes in equity and IAS 16 requirements
3. 0:54 Key disclosure requirements for PPE notes
4. 1:47 PPE reconciliation example and structure
5. 3:01 Additional disclosures for revalued assets
6. 3:38 Asset registers and internal controls

About this lesson

You'll discover what information must appear in the notes to the financial statements, including the measurement basis, depreciation methods, and a detailed reconciliation showing how non-current asset balances have moved during the period. This is essential for Financial Accounting papers where examiners test your ability to support the single aggregated figure shown on the statement of financial position with comprehensive supporting notes. You'll also explore how companies use asset registers as an internal control mechanism to track and verify their non-current assets. The video walks you through the specific disclosures IAS 16 requires. For each class of property, plant and equipment, you need to disclose the measurement basis (cost or revalued), depreciation methods and useful lives, and opening and closing gross carrying amounts with accumulated depreciation. The reconciliation is the key disclosure—it shows additions, depreciation, revaluations, and disposals, explaining exactly how each asset category changed from period start to period end. This reconciliation is what transforms the single line item on your statement of financial position into a transparent, auditable record. For revalued assets, additional disclosures become important. You must state the revaluation date, whether an independent valuer was used, what the carrying amount would have been under the cost model, and how the revaluation surplus moved during the period. The lesson also introduces asset registers—the internal accounting records companies maintain to monitor and control their non-current assets, linking physical assets to the financial statements and supporting the accuracy of your disclosures.

Duration: 5m