Property, plant & equipment and its impairment is where US GAAP and IFRS diverge meaningfully — on the revaluation option, on component depreciation, and on the impairment test and its reversal. This is the standard side of SAP Asset Accounting (see Related).
| Area | US GAAP (ASC 360) | IFRS (IAS 16) |
|---|---|---|
| Subsequent measurement | Cost model only | Cost model or revaluation model (fair value) |
| Component depreciation | Allowed, not emphasized | Required (depreciate significant parts separately) |
| Residual value / useful life | Reviewed | Reviewed at least annually |
| Area | US GAAP (ASC 360) | IFRS (IAS 36) |
|---|---|---|
| Test | Two-step — recoverability via undiscounted cash flows, then write down to fair value | One-step — carrying amount vs recoverable amount (higher of FVLCD and value-in-use, discounted) |
| Grouping | Asset group | Cash-generating unit (CGU) |
| Reversal | Prohibited | Required if conditions improve (except goodwill) |
Because IFRS discounts in the trigger test and allows reversals, IFRS recognizes impairment earlier and more often, then can reverse it — a US ledger does neither. Goodwill impairment is covered under its own topic (ASC 350 / IAS 36).
An educational reference and original synthesis — not investment advice, and not a substitute for the standard or for professional accounting guidance. For authoritative measurement detail, consult ASC 360 / IAS 16 / IAS 36 directly.