Sample Disclosure – Change In Accounting Estimate On Depreciation Charges (19 February 2009)

Change In Accounting Estimates

The revised FRS 116 – Property, Plant and Equipment requires the review of the residual value and the useful life of an asset at least at each financial year end. The Group revised the estimated residual values of certain motor vehicles with effect from (day/month/year).

The revisions were accounted for prospectively as a change in accounting estimates and as a result, the depreciation charges of the Group for the current financial year end have been increased by RMx,xxx,xxx.

Sample Disclosure – Note on Property, Plant and Equipment (4 December 2008)

PROPERTY, PLANT AND EQUIPMENT

 

Freehold land and buildings

Furniture & fittings

Total

 

$

$

$

 

 

 

 

At day/month/year (beginning) and day/month/year (end)

xxx,xxx

xxx,xxx

xxx,xxx

Valuation

x,xxx,xxx

x,xxx,xxx

Cost

x,xxx,xxx

x,xxx,xxx

x,xxx,xxx

       
Accumulated depreciation      
At day/month/year (beginning)

x,xxx

x,xxx

x,xxx

Charge for the financial year (current year)

x,xxx

x,xxx

x,xxx

At day/month/year (end)

xx,xxx

xx,xxx

xx,xxx

       
Net Book Value at day/month/year (end)

x,xxx,xxx

x,xxx,xxx

x,xxx,xxx

       
       
Net Book Value at day/month/year (beginning)

x,xxx,xxx

x,xxx,xxx

x,xxx,xxx

       
Depreciation charge for the financial year      
ended day/month/year (previous year)

x,xxx

x,xxx

x,xxx

       
*Analysis of valuation of land :      
If freehold land had not been revalued, it would have been included in the following amounts:  
       
   

Current year

Previous year

   

$

$

       
At cost:      
Freehold land  

xx,xxx

xx,xxx

       
       

The freehold land was revalued by the Directors based on an open market value basis on day/month/year (date of valuation).

The net book value of assets under hire purchase financiang amounted to $xx,xxx (Previous year: $xx,xxx).