| The depreciable amount is calculated using the asset’s residual value. |
The depreciable amount is calculated using the lesser of salvage value or residual value. Salvage value is the estimated value of the asset at the end of its physical life, rather than its useful life. |
| The term used is depreciation. |
The term used is amortization. |
| Cost, revaluation, and fair-value models can be used. |
Only the cost model is allowed. |
| Assessment for indications of impairment should occur at least annually. |
Impairment is tested only when circumstances indicate impairment may exist. |
| A one-step process to determine impairment, based on comparing recoverable amount with carrying amount, is used. Recoverable amount is the greater of value in use of fair value less costs to sell. |
A two-step process is used. Impairment is tested first by comparing carrying value with undiscounted cash flows. If impaired, the loss is determined by subtracting the fair value from the carrying amount. See 10.7 Appendix A for details. |
| Impairment loss can be reversed when estimates change. However, amount of reversal may be limited. |
Impairment loss cannot be reversed. |
| Assets that meet the criteria of held for sale are classified as current. |
Assets held for sale can be classified as current only if the asset is sold before financial statements are completed. |
| More extensive disclosure requirements must be met. |
Fewer disclosure requirements must be met. |
