|
|
 |
|
Viewing report
|
|
|
|
International Financial Reporting Standards (IFRS) Financial Reporting Requirements Regarding the Useful Life of Information Technology Equipment
DMC Valuations, Nov 2010, Pages: 35
The International Financial Reporting Standards (IFRS) has outlined financial reporting requirements, including the preparation of financial statements and regulatory filings, and the application and implementation of complex accounting standards to be implemented by January 1, 2011 for companies in the European Union. Mexico is adopting the new standards with a 2012 adoption date. The SEC is considering measures that could lead to retiring U.S. GAAP and adopting IFRS in the United States. The purpose of this report is to identify the major categories of Information Technology (IT) equipment and determine normal decline rates over the Economic Useful Life of the assets to assist in complying with the new IFRS accounting standards.
The International Financial Reporting Standards (IFRS) is currently being adopted by more than 12,000 companies in nearly 100 countries outside the United States. The IFRS are the less-detailed financial reporting rules developed by the London-based International Accounting Standards Board (IASB). The IFRS are now in use for domestic listed companies in over 115 countries worldwide in the European Union. Canada, the largest U.S. trading partner, is adopting IFRS in 2011, followed closely by Mexico with a 2012 adoption date. The SEC is considering measures that could lead to retiring U.S. GAAP and adopting IFRS in the US. The effects of global reporting standards on US companies will accelerate over the next few years, regardless of how the SEC proceeds. DMC Valuations Group has over 25 years in providing fair market values and decline rate schedules for asset classifications. DMC has developed a Valuation report that fits the requirements for the new IFRS guidelines for determining “useful lives” of IT and copier equipment. The report identifies and reports on the decline schedules of the following asset classifications.
Overview of the Report
The IFRS has required companies to adhere to the new regulations of Useful Life relative to various classifications of IT equipment. DMC Valuations Group has been reporting on the fair market value and forecasting residual values for IT equipment for the last 25 years. The fair market value reports and residual value decline rate curves have been successfully utilized in litigation in federal, district and tax courts in the United States over the last 14 years and provides this information to many corporate clients in Canada and the United States. DMC has been publishing fair market values since 1985 and has a very large database of values from Personal Computers to mainframes to support the decline rates herein.
The report will determine the Economic Useful Life (EUL) and present decline rate schedules for the following different classifications of equipment:
1. Desktop equipment
2. Laptop, notebook and tablet equipment
3. Servers, both low to midrange and high end to mainframes
4. Printers – desktop and high volume
5. Network communications – low end hubs and routers, appliances, and high end switches
6. Disk Subsystems
7. Tape Subsystems
8. UPS Systems – low end and high end systems
9. Copiers – multifunction low end and high end printers and scanners
The report identifies the methodologies used and provides examples of how the decline rates were determined for these classifications. It is important to get a head start on the new IFRS rules and the DMC report will assist you in your identification of IT asset decline rates.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
