Asset movement reconciliation
An asset movement reconciliation explains how an opening non-current asset balance becomes the closing balance through additions, disposals, depreciation or amortisation and other applicable movements. Notes may reconcile gross amounts and accumulated charges separately. The reconciliation supports understanding of the statement-of-financial-position balance and links it to transactions and expenses. Include only movements relevant to the particular asset class and reporting requirements.
Worked example
Opening carrying amount $50,000 plus additions $20,000 less carrying amount disposed $8,000 and depreciation $10,000 gives closing carrying amount $52,000, assuming no other movements.
Common mistake
Subtract the disposed asset’s carrying amount in a carrying-amount reconciliation, not its cash sale proceeds or original cost.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | K1 | Supporting | July 2027–August 2028 |
Related terms
Also called: Non-current asset roll-forward