The main impacts of IFRS on the management of fixed assets that reflect in the financial statements are: depreciable values, deemed cost, asset revaluations, impairment test and leasing. These analyzes directly affect the values, useful lives and depreciation, exhaustion and amortization rates of the assets.
The Impairment test is intended to prevent an asset from being register with a value greater than the recoverable amount (market value – selling costs). The law establishes that companies must periodically analyze the recovery of amounts recorded in the fixed asssets and intangible assets in order to record the identified losses. The hiring of a company specialized in valuation is essential for the company’s recoverability test.
It has an impact on the main financial ratios, as entities are required to disclose in detail the operating leases. In this way, the company will have a control of its assets and an accounting value closer to reality and a change of transparency in the comparability of entities, regardless of its financial leasing strategy.