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Report on Non-Current Assets, Disclosures, and Events After the Reporting Period

a) Accounting for Non-Current Assets Held for Sale and Discontinued Operations (IFRS 5)

Under IFRS 5, a non-current asset (or disposal group) is classified as held for sale when:

• Its carrying amount will be recovered principally through sale rather than continued use.Finally, IAS 10 ensures that events after the reporting period are appropriately reflected, safeguarding the reliability of financial statements--especially in uncertain global conditions.b) Disclosure Notes for Non-Current Assets and Related Items

IAS 16 - Property, Plant, and Equipment (Tangible Assets)

Key disclosures include:

• Measurement bases (cost or revaluation model).IAS 38 - Intangible Assets

Entities must disclose:

• Nature of intangible assets (e.g., patents, goodwill, software).IAS 2 - Inventories

Disclosure requirements:

• Accounting policies (e.g., FIFO, weighted average).* Results of discontinued operations (a component of the entity that has been disposed of or classified as held for sale) are shown separately in the statement of profit or loss.* Management must consider:
  • Geopolitical conflicts
  • Supply chain disruptions
  • Government or global sanctions
  • Access to markets and financing

?Conclusion

Effective accounting and disclosure of non-current assets enhance transparency and support decision-making by investors and stakeholders.Proper classification under IFRS 5 ensures clarity when assets are no longer part of ongoing operations.IAS 37 - Provisions, Contingent Liabilities, Contingent Assets

Required disclosures:

• Nature and purpose of provisions.c) Events After the Reporting Period (IAS 10)

Definition: Events occurring between the reporting date and the date when financial statements are authorized for issue.* Their results are disclosed separately to improve comparability and transparency.* Internally generated vs. acquired assets.* Movements in provisions (opening, additions, usage, reversals).Examples:

• Settlement of a lawsuit confirming an existing obligation.Going Concern Consideration

• If events after the reporting date indicate the entity is no longer a going concern, financial statements must be prepared on a different basis.Meanwhile, robust disclosures under IAS 16, IAS 38, IAS 37, and IAS 2 provide insight into asset management and risks.* Restrictions on title or assets pledged as collateral.* Bankruptcy of a customer confirming receivables impairment.Non-Adjusting Events

• Indicate conditions that arose after the reporting date.* These are always treated as adjusting events in terms of presentation (even if triggered after reporting date).* Depreciation ceases once classified as held for sale.Presentation:

• Presented separately in the statement of financial position.Discontinued Operations:

• Must represent a major line of business or geographical area.* Carrying amounts (gross and accumulated depreciation).* Amortization methods and periods.* Impairment losses and reversals.* Contingent liabilities (unless remote) described but not recognized.* Carrying amount by classification (raw materials, WIP, finished goods).Examples:

• Natural disasters occurring after year-end.* Major business combinations or asset purchases.assets are measured at the lower of:

  • Carrying amount, and
  • Fair value less costs to sell.* Depreciation methods and useful lives.* Reconciliation of opening and closing balances.* Useful lives (finite or indefinite).* Cost of inventories recognized as expense.* Write-downs and reversals.* Inventories pledged as security.* Financial statements must be adjusted.Measurement:

• ????????????2.?

Report on Non-Current Assets, Disclosures, and Events After the Reporting Period

a) Accounting for Non-Current Assets Held for Sale and Discontinued Operations (IFRS 5)

Under IFRS 5, a non-current asset (or disposal group) is classified as held for sale when:

• Its carrying amount will be recovered principally through sale rather than continued use.


• The asset is available for immediate sale in its present condition.


• The sale is highly probable (usually expected within 12 months).

Measurement:

• ასეთი assets are measured at the lower of:
  
  
  
  • Carrying amount, and
  
  
  • Fair value less costs to sell.
  
  
  
  


• Depreciation ceases once classified as held for sale.

Presentation:

• Presented separately in the statement of financial position.


• Results of discontinued operations (a component of the entity that has been disposed of or classified as held for sale) are shown separately in the statement of profit or loss.

Discontinued Operations:

• Must represent a major line of business or geographical area.


• Their results are disclosed separately to improve comparability and transparency.

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b) Disclosure Notes for Non-Current Assets and Related Items

IAS 16 – Property, Plant, and Equipment (Tangible Assets)

Key disclosures include:

• Measurement bases (cost or revaluation model).


• Depreciation methods and useful lives.


• Carrying amounts (gross and accumulated depreciation).


• Reconciliation of opening and closing balances.


• Restrictions on title or assets pledged as collateral.

⸻

IAS 38 – Intangible Assets

Entities must disclose:

• Nature of intangible assets (e.g., patents, goodwill, software).


• Useful lives (finite or indefinite).


• Amortization methods and periods.


• Impairment losses and reversals.


• Internally generated vs. acquired assets.

⸻

IAS 37 – Provisions, Contingent Liabilities, Contingent Assets

Required disclosures:

• Nature and purpose of provisions.


• Expected timing of outflows.


• Uncertainties about amount/timing.


• Movements in provisions (opening, additions, usage, reversals).


• Contingent liabilities (unless remote) described but not recognized.

⸻

IAS 2 – Inventories

Disclosure requirements:

• Accounting policies (e.g., FIFO, weighted average).


• Carrying amount by classification (raw materials, WIP, finished goods).


• Cost of inventories recognized as expense.


• Write-downs and reversals.


• Inventories pledged as security.

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c) Events After the Reporting Period (IAS 10)

Definition:
Events occurring between the reporting date and the date when financial statements are authorized for issue.

⸻

Types of Events:

1. Adjusting Events

• Provide evidence of conditions that existed at the reporting date.


• Financial statements must be adjusted.

Examples:

• Settlement of a lawsuit confirming an existing obligation.


• Bankruptcy of a customer confirming receivables impairment.

⸻

2. Non-Adjusting Events

• Indicate conditions that arose after the reporting date.


• No adjustment, but disclosure is required if material.

Examples:

• Natural disasters occurring after year-end.


• Major business combinations or asset purchases.

⸻

Going Concern Consideration

• If events after the reporting date indicate the entity is no longer a going concern, financial statements must be prepared on a different basis.


• These are always treated as adjusting events in terms of presentation (even if triggered after reporting date).


• Management must consider:
  
  
  
  • Geopolitical conflicts
  
  
  • Supply chain disruptions
  
  
  • Government or global sanctions
  
  
  • Access to markets and financing
  
  
  
  

⸻

Conclusion

Effective accounting and disclosure of non-current assets enhance transparency and support decision-making by investors and stakeholders. Proper classification under IFRS 5 ensures clarity when assets are no longer part of ongoing operations. Meanwhile, robust disclosures under IAS 16, IAS 38, IAS 37, and IAS 2 provide insight into asset management and risks. Finally, IAS 10 ensures that events after the reporting period are appropriately reflected, safeguarding the reliability of financial statements—especially in uncertain global conditions.