Property, plant and quipment - tangible assets used in production of goods and services. Under IFRS can be reported using cost model or revaluation model. Under gaap only cost model. cost model, pp&E reported at amortized cost (historical cost minus depreciation, amortization, depletion, and impairment loss) Historical cost include purchase price plus any costs to get asset ready for use such as delivery or installation costs.
Under cost model, must be tested for impairment. Asset impaired if carrying value exceeds recoverabgle amount. Under iFRS recoverable amount of asset is either fair value less any selling costs, or assets value in use, whichever greater. If imparied, writen down and recognized in income statment.
Revaluation mode, reproted at fair value less accumulated depreciation. Changes in fair value reflect in sharehoders' equity.
Investment property - IFRS can be either amortized costs or fair value. Gaap has no specific defintion.
Intaginble assets - non monetary assets lacking physical substance. Identifiable or unidentifiable. Example of identifaible are patents, trademarks, copyrights. Unidentifiable are goodwill.
Under gAAP, intagible assets created internally, such as research and dev costs, are expnsed as incurred. Under IFRS, firm must id research stage and develpment statge. Under IFRS, firm must expense costs incurred during research stage but can capitalize costs incured during devlopment stage.
Finit, lived intagible are tested for impariment at least anualy. Under IFRS and US GAAp all of following should be expenses incurred,
- -start up and traing costs
- -admin overhaed
- -advertising and promo costs
- -realocation and reorg costs
- -termination costs.
Goodwill - is excess purchase price over fair value of net assets. Current Asset+Plant and Equip minus liabs. Purchase price - nubmer above. Do not take into account past goodwill. Tested for impairment atleast annually, if reduced loss recongized on income statement.