Capital Gains Documentation

[DaveC49]

Hi John,

The asset classes are not defined fully in AASB 116 but it gives examples of
what constitutes different asset classes

e.g

(a) land; (b) land and buildings; (c) machinery; (d) ships; (e) aircraft;
(f) motor vehicles; (g) furniture and fixtures; and (h) office equipment.

If you apply revaluation to one asset in a given class you are required to
apply it to all assets in that class and at the same time.

The following paragraphs define the options available after recognition of
an asset

29 An entity shall choose either the cost model in paragraph 30 or the
revaluation model in paragraph 31 as its accounting policy and shall apply
that policy to an entire class of property, plant and equipment.

Cost Model

30 After recognition as an asset, an item of property, plant and equipment
shall be carried at its cost less any accumulated depreciation and any
accumulated impairment losses.

Revaluation Model 31

After recognition as an asset, an item of property, plant and equipment
whose fair value can be measured reliably shall be carried at a revalued
amount, being its fair value at the date of the revaluation less any
subsequent accumulated depreciation and subsequent accumulated impairment
losses. Revaluations shall be made with sufficient regularity to ensure that
the carrying amount does not differ materially from that which would be
determined using fair value at the end of the reporting period. 

The 3-5 years seems to be a fallback position but the requirement is to
revalue as often as necessary to reasonably track the fair value of the
asset.

Full text is at
http://www.aasb.gov.au/admin/file/content105/c9/AASB116_07-04_COMPjun09_07-09.pdf

GAAP is defined in Australia by the AASB ( Australian Accounting Standards
Board http://www.aasb.gov.au) in its standards which are derived from the
IFRS international standards (http://www.ifrs.org/Pages/default.aspx). The
GAAP are generally defined as the fundamental principles that the accounting
standards are derived from and usually form an initial part of the standards
definition.

As far as I know the US is not a signatory to the IFRS but US standards
follow the IFRS reasonably closely and accounting standards are determined
in the US by the FASB (http://www.fasb.org/home) . The US standards are
available on that site. I think a basic but limited view of the standards is
free

The equivalent UK body is the Financial Reporting Council
(https://www.frc.org.uk/Our-Work/Corporate-Governance-Reporting/Accounting-and-Reporting-Policy.aspx).
I've not looked to closely at the UK as my stepson's brother is an
accountant with PwC in London so I just ask him if I need to know anything
about UK accounting.

Cheers

David




--
View this message in context: http://gnucash.1415818.n4.nabble.com/Capital-Gains-Documentation-tp4687237p4687294.html
Sent from the GnuCash - User mailing list archive at Nabble.com.