049 Depreciation and IFRS
International Financial Reporting Standards Foundation (IFRSF) issued on November 19 2010 “Depreciation and IFRS” as Occasional Education Notes, and Accounting Standards Board issued an interim translation of it on December 3 2010.
This includes the information that would be good references when applying IAS16. The followings are contents of it and please see the original if you are interested.
・Accounting treatments of each component of fixed assets
・an explicit estimate of residual value
・an explicit estimate of useful life
In today’s Japanese accounting practice, depreciation of fixed assets are often made in compliance with useful life, residual value, and depreciation method articulated by Corporation Tax Act. While changing the accounting system to IFRS, they are to be determined by each company. Companies and auditors will be required to make a decision in many cases and carry heavier burden for that, so they should be well prepared.
Our audit corporation are ahead in that sense because we have already reached the place where we publish an instruction book of IFRS, “A complete guidebook of the introduction of IFRS for practical cases with CD-ROM.” If you are interested, visit Amazon.com where you can acquire our book.
