ACCOUNTING FOR LONG-TERM ASSETS BASED ON INTERNATIONAL STANDARDS: CORPORATE PRACTICES AND IMPLICATIONS
Keywords:
long-term assets, asset revaluation, depreciationAbstract
This paper examines the accounting treatment of long-term assets in accordance with international financial reporting standards (IFRS), focusing on how companies apply these standards in practice and the implications for financial transparency and strategic decision-making. Long-term assets, such as property, plant, equipment, and intangible resources, represent a significant portion of enterprise value and require consistent, transparent accounting practices to ensure comparability and compliance in the global market. Drawing on a review of IFRS standards—particularly IAS 16 (Property, Plant and Equipment), IAS 38 (Intangible Assets), and IAS 36 (Impairment of Assets)—the paper analyzes the recognition, measurement, depreciation, revaluation, and impairment processes. It also evaluates corporate reporting practices using real-world examples from companies operating in diverse industries and jurisdictions. The findings indicate that while IFRS adoption has enhanced global consistency in asset accounting, variation still exists in the application of judgment-based elements such as useful life estimation, revaluation frequency, and impairment testing. The paper concludes by highlighting best practices, common challenges, and policy implications for improving the quality and reliability of long-term asset reporting under IFRS
References
Alexander, D., & Britton, A. (2020). Financial
Reporting (8th ed.). Cengage Learning.
Barlev, B., & Haddad, J. R. (2007).
Harmonization, comparability, and fair value
accounting. Journal of Accounting, Auditing &
Finance, 22(3), 493–509.
Burritt, R. L., & Schaltegger, S. (2014).
Sustainability accounting and reporting: Fad otrend? Accounting, Auditing & Accountability
Journal, 27(2), 328–355.
Christensen, H. B., Lee, E., & Walker, M.
(2015). Incentives or standards: What
determines accounting quality changes around
IFRS adoption? European Accounting Review,
(1), 31–61.
https://doi.org/10.1080/09638180.2014.92144
Elad, C., & Herbohn, K. (2011). Implementing
fair value accounting in the agricultural sector.
The British Accounting Review, 43(2), 103–118.
https://doi.org/10.1016/j.bar.2011.02.005
IASB. (2018). Conceptual Framework for
Financial Reporting. International Accounting
Standards Board.
IFRS Foundation. (2023). IAS 16 Property,
Plant and Equipment. https://www.ifrs.org
IFRS Foundation. (2023). IAS 36 Impairment of
Assets. https://www.ifrs.org
IFRS Foundation. (2023). IAS 38 Intangible
Assets. https://www.ifrs.org
Nobes, C. (2017). International Classification of
Financial Reporting (3rd ed.). Routledge.
Ramanna, K., & Watts, R. L. (2012). Evidence
on the use of unverifiable estimates in required
goodwill impairment. Review of Accounting
Studies, 17(4), 749–780.
https://doi.org/10.1007/s11142-012-9188-5
Walton, P. (2019). IFRS and the Politics of
Accounting Standard-Setting. Routledge.
Zeff, S. A. (2013). The objectives of financial
reporting: A historical survey and analysis.
Accounting and Business Research, 43(4), 260–
Schipper, K. (2005). The introduction of
International Accounting Standards in Europe:
Implications for international convergence.
European Accounting Review, 14(1), 101–126.
Giner, B., & Rees, W. (2012). On the
asymmetric recognition of gains and losses in
earnings and book values. European
Accounting Review, 21(2), 135–157.
Schaltegger, S., & Burritt, R. (2010).
Sustainability accounting for companies:
Catchphrase or decision support for business
leaders? Journal of World Business, 45(4), 375–
https://doi.org/10.1016/j.jwb.2009.08.002
Elkington, J. (1997). Cannibals with forks: The
triple bottom line of 21st-century business.
Capstone Publishing.
KPMG. (2020). The Time Has Come: The KPMG
Survey of Sustainability Reporting 2020.
https://home.kpmg/xx/en/home/insights/2020
/11/the-time-has-come.html
Gray, R., Owen, D., & Adams, C. (2014).
Accounting and accountability: Changes and
challenges in corporate social and
environmental reporting (2nd ed.). Routledge.
International Integrated Reporting Council
(IIRC). (2013). The International
Framework.
https://www.integratedreporting.org/resource/
international-ir-framework/
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
