Accounting policies and practices applicable for the impairment of assets that generate income other than cash flows
Author:
Marinela Daniela MANEA
JEL:
H83.
DOI:
10.20869/AUDITF/2016/139/761
Keywords:
Public sector, non-cash-generating assets,
depreciation loss, recoverable value
Abstract:
Starting with 2005, at an European level, the European
Commission alongside the International Federation of
Accountants (IFAC) promoted the implementation of
accrual accounting within the public sector and, by
default, the shift from cash accounting to accrual
accounting, as well as the development of financial
statements based on the International Public Sector
Accounting Standards (IPSAS). IPSAS’ starting point
were the International Financial Reporting Standards
(IFRS) issued by the International Accounting Standards
Board (IASB). The requests of the IPSAS Standard 21
“Impairment of Non-Cash-Generating Assets” were
drawn up in accordance with this policy. The
differentiated practices that can be applied to the public
sector in relation to the private sector have led us to the
analysis of the solutions suggested by IPSAS 21
precisely to understand and further study the concepts
and mechanisms of the depreciation of assets that
generate income other than cash flows. Without
neglecting the reality of the Romanian accounting
practice within the public sector, we will gradually go
through the steps of measuring and recognizing the
depreciation losses associated with the assets that
generate income other than cash flows, owned by the
public entities.
Abstract(101KB)
Article(239KB)