How can I explain assets in IFRS?

International accounting in general requires companies to use international financial reporting standards (IFRS), which is a set of accounting principles that differ in some places compared to the generally received accounting principles (GAAP). There are no big differences in some sections between IFRS and GAAP. For example, accounting of assets in IFRS is very similar compared to traditional GAAP methods. However, there are several differences, such as the ability to work with a strict accounting policy. Fixed assets in IFRS accounting allow the company to select which method to use, such as cost base or overalls principle. In general, an asset is a source controlled by an entity that will cause future economic benefits. IFRS accounting principles still separate assets into two general classes, current and long -term. The first group represents items that can withstand 12 months, while the second group includes items that generally last for more than 12 months. Companies must report assets in the balance sheetVidites such as cash, tradable securities and receivables, with other types between these items.

solid assets include real estate, plants and equipment (PPE), which means long -term assets in the principles of IFRS. Here, the company can generally select between the cost base method or overestimation method to record these items in the main book. Again, there are some differences in GAAP, mostly how society applies certain principles of IFRS. IFRS requires companies to use a stable currency to record these assets so that no inflation should be charged in the dollar values ​​for these items. The Company must publish which method will decide to use in IFRS asset accounting.

The cost of the PPE account account means that the company records assets for acquisition costs plus small fees for the purpose of indicating the asset. For correct depreciation afterLoads over time are necessary to estimate the residual value and durability useful for any asset. The overestimation method requires the company to record and regularly regulate the base of the PPE asset based on market values ​​on the open market. Adjustments for IFR assets according to the overestimation method require profits and losses to be registered against income for the period in which the adjustment occurs. Assets without an open market on which the company can assess the current values ​​of this method in IFRS accounting.