Enquiry:

Section 17.31 of the IFRS for SMEs requires a reconciliation of the carrying amount at the beginning and end of the reporting period showing additions, disposals, depreciation, etc. in respect of property, plant and equipment, and specifically states that this reconciliation need not be presented for prior periods.

On the other hand the section 2.18 of the Revised ‘Accounting and Financial Reporting Standard for Small-Sized Entities’ (Revised AFRS for SSEs) is silent about the presentation of the reconciliation for the prior years. So should we presume that this reconciliation need not be presented for the prior periods? We understand that small-sized entities cannot be overburdened for more disclosure in contrast to medium-sized entities.

Opinion:

Section 1.10 of the Revised AFRS for SSEs requires that the entity shall disclose comparative information in respect of the previous comparable period for all amounts presented in the current period’s financial statements.

Further, section 2.18 of the Revised AFRS for SSEs outlines the requirement to present reconciliation of the property plant and equipment. A specific provision allowing the companies not to present the reconciliation for the comparative period is not contained in section 2.18. In this regard it is pertinent to mention that a specific line is included in section 3.9 relating to intangible assets, reproduced hereunder:

“This reconciliation need not be presented for prior periods”.

The requirements of section 1.10 and 2.18 read together require the presentation of reconciliation of the property, plant and equipment for the current and comparative period.

(October 02, 2017)