Fixed Assets
Code: 1210
👁 Views: 116
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Fixed assets used in operations
Sub-accounts
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 16
Property, Plant and Equipment
US GAAP
ASC 360
Property, Plant and Equipment
⚠️ Key Difference Between IFRS and US GAAP
IFRS allows revaluation model and one-step impairment; GAAP uses cost only and two-step test
❓ Frequently Asked Questions
Q: When are costs related to fixed assets capitalized?
A: Costs that increase efficiency or extend useful life (e.g., improvements, expansions) are capitalized. Ordinary costs (maintenance, repairs) are expensed immediately.
Q: What depreciation methods are allowed under standards?
A: Straight-line, declining balance, and units of production. Under IFRS, revaluation model is allowed; under GAAP, only cost model is permitted.
Q: How is the sale of a fixed asset before its useful life recorded?
A: The asset is derecognized at its cost and accumulated depreciation, then the gain or loss on sale is recorded.