Extracts from relevant Accounting Standards for Private Enterprises (ASPE)
Section 3061, Property, Plant and Equipment, paragraphs 3061.16-.22, and 3061.24; and Section 3064, Goodwill and Intangible Assets, paragraphs 3064.18-.30, 3064.61-.68, and 3064.91
Sections 3061 and 3064 specify the recognition and measurement criteria for the cost of assets (such as property, plant, and equipment, or intangible assets). These sections provide the requirements for amortizing depreciable assets, which include estimating the residual value and the expected useful life of an asset. Review of the amortization methods and estimates used to determine the life and useful life of a depreciable asset is required on a regular basis.
Climate-related matters may indicate a change in the estimated residual value and expected useful life of an asset. For example, new emerging green technologies that emit less greenhouse gas emissions or newly imposed legal restrictions may cause obsolescence or inaccessibility of the assets, as discussed in educational material published by the IFRS Foundation. Entities are required to disclose the amortization method used, including the amortization period (i.e., expected useful life) or rate for each class of assets and to disclose the nature and amount of any change in estimated residual values or expected useful lives (to be disclosed as changes in accounting estimates under Section 1506, Accounting Changes, paragraph 1506.36).
