IFRS For Dummies

Chapter 5

Looking at Assets You Don’t See Every Day

In This Chapter

Building your own assets

Borrowing money to build assets

Receiving grants

Figuring out financial assets

Introducing impairment losses

Assets are the things that belong to organisations, and they can take many different forms. You account for some assets on a regular basis, and I take you through the common assets in Chapter 4. In this chapter, I cover some of the more unfamiliar assets that you may come across during your career as an accountant, or a trainee accountant.

First, I look at constructed assets. Organisations acquire assets, but sometimes they make the assets themselves. For example, a company may build a new head office. I show you how to account for assets under construction, and any finance raised to put into the build.

Next, I look at how you account for grants. Many organisations receive grants from places like government agencies to enable them to buy or build items of assets. Some companies are ...