Sample Disclosure – Change In Accounting Policy On Property, Plant and Equipment (21 August 2009)

Change In Accounting Policy

On 1 January 2009, the Company changed its accounting policy on the measurement of its freehold land and buildings form cost model to revaluation model. Pursuant to FRS 116: Property, Plant and Equipment, the revaluation has not been dealt with as a prior year adjustment in accordance with FRS 108: Accounting Policies, Change In Accounting Estimates and Errors, but instead treated as revaluation made during the year.

The effect of the change is as follows:-

Balance sheet as at 1 January 2009




Property, plant and equipment


Asset revaluation reserve


Deferred tax liability