fixed-assets-advisorlisted

# Fixed Assets & Impairment Advisor — Reference Skill ## Purpose Provide the complete multi-jurisdiction framework for fixed assets, depreciation, and impairment advisory — from PP&E initial recognition through useful life reviews, revaluation, impairment testing (with critical reversibility divergence), goodwill, intangibles, R&D capitalisation, and the interaction with tax depreciation. --- ## Part 1: PP&E — Recognition and Initial Measurement ### Recognition Criteria **US GAAP (ASC 360-10-05)**: An item of PP&E is recognized when it is probable that future economic benefits will flow to the entity and the cost can be measured reliably. No explicit recognition probability threshold is stated; capitalisation vs. expense is a matter of policy based on materiality thresholds. **IFRS (IAS 16.7)**: An item of PP&E is recognized as an asset when: (a) it is probable that future economic benefits will flow to the entity; and (b) the cost can be measured reliably. Both conditions must be met. **German HGB (§246, §253 HGB)**: All assets must be recognized (Aktivierungspflicht — mandatory capitalisation for assets that meet the definition). No probability assessment is applied separately; legal ownership or economic substance determines whether an asset is recognized. **JGAAP (ASBJ Statement No. 11)**: Broadly consistent with IFRS criteria for recognition; physical assets acquired must be capitalized at cost. ### Cost Model (All Jurisdictions) Initial measurement at cost: