9. The Non-Current Assets notes to the Statement of Financial Position

Question 1

What is the reason for detailed notes in respect of PPE in the financial statements?

Answer 1

There is usually a detailed note to the financial statements in respect of PPE, with just the summarised figure in the statement of financial position.

Question 2

What kind of information does the detailed note in respect of PPE usually contain? (5)

Answer 2

1. Cost and accumulated depreciation brough forward
2. Additions during the reporting period
3. Disposals during the reporting period, and the related accumulated depreciation
4. Depreciation charge for the reporting period
5. Closing balance carried forward

Note: Disposal proceeds, and gains/losses on disposal, do not appear in the non-current assets note.

Question 3

What kind of information does the PPE disclosure note contain?

Where does the information come from?

Answer 3

The PPE disclosure note contains detailed information that is not presented on the face of the financial statements.

The information will be sourced from the underlying accounting records of the business, mainly the nominal ledger accounts relevant to property, plant and equipment.