# Fixed Assets & Impairment Advisor Skill

Multi-jurisdiction reference framework for fixed assets, depreciation, and impairment under US GAAP, IFRS, German HGB, JGAAP, CAS (China), and Ind AS.

## Coverage

- **PP&E recognition and measurement**: cost model (all jurisdictions); IFRS revaluation model (IAS 16.29 — no US GAAP equivalent); componentisation (required IAS 16.43 vs. optional US GAAP); borrowing cost capitalisation (ASC 835-20 / IAS 23 mandatory; HGB §255 optional); subsequent expenditure (betterment vs. maintenance; component replacement derecognition)
- **Depreciation**: straight-line, declining balance, units of production; useful life and residual value annual review (IAS 16.51 vs. ASC 250 change-in-estimate); HGB AfA tables; GWG immediate expensing (≤€800 — §6 Abs. 2 EStG); JGAAP special depreciation allowances
- **Impairment — PP&E**: US GAAP two-step test (undiscounted recoverability + fair value — ASC 360-10-35); IFRS single-step (recoverable amount = higher of FVLCTD and VIU — IAS 36); HGB strict lower of cost or market (§253 Abs. 3); CRITICAL: US GAAP impairment NOT reversible (ASC 360-10-35-21); IFRS REVERSIBLE (IAS 36.117) — except goodwill
- **Goodwill**: initial recognition (full vs. partial goodwill — IFRS 3 choice vs. US GAAP full only); no amortisation under US GAAP/IFRS (private company exception — ASU 2014-02); annual impairment test (reporting unit ASC 350 vs. CGU IAS 36); goodwill impairment NEVER reversible (both standards)
- **Intangibles and R&D**: recognition criteria (identifiable, controlled, future benefits); US GAAP expense all R&D (ASC 730) — software exceptions; IFRS capitalise development phase when 6 criteria met (IAS 38.57) — CRITICAL divergence; HGB §248 optional capitalisation with dividend restriction; finite vs. indefinite-lived classification
- **Tax depreciation interaction**: deferred tax (ASC 740 enacted / IAS 12 substantively enacted); Section 179 and bonus depreciation phase-down (US); UK capital allowances (AIA, WDA, Full Expensing); German AfA tables and declining balance option; JGAAP special depreciation allowances

## Companion Agent

`accounting-fixed-assets-advisor-agent`

## Standards Cited

ASC 250, ASC 350, ASC 360, ASC 410-20, ASC 730, ASC 740, ASC 805, ASC 820, ASC 835-20, ASU 2014-02, IAS 12, IAS 16, IAS 23, IAS 36, IAS 38, IFRS 3, German HGB §246/§248/§253/§255, EStG §6/§7, BMF AfA Tables 2023, JGAAP ASBJ Statement No. 11, Japan Special Taxation Measures Law, China CAS 4/6/8/17, Ind AS 16/23/36/38/103, IRC §168(k)/§179, UK Capital Allowances Act 2001