- requires the use of either the cost basis or the fair value basis to measure a class of non-current assets subsequent to initial recognition. Any of the following measures constitutes the use of the cost basis to measure assets within a class of non-current assets:
- their cost of acquisition, less any accumulated depreciation and accumulated recoverable amount write-downs or impairment losses; in respect of non-monetary assets contributed to the entity,
- their fair value as at the date of the contribution, less any subsequent accumulated depreciation and subsequent accumulated recoverable amount write-downs or impairment losses; and
- their carrying amounts as at the time that revaluation of that class was discontinued, less any subsequent accumulated depreciation and subsequent accumulated recoverable amount write-downs or impairment losses;
- requires that, where the fair value basis is applied, revaluations be kept up to date;
- specifies that a revaluation of non-current assets to fair value in consolidated financial statements required by Accounting Standard AASB 1024 “Consolidated Accounts” and Australian Accounting Standard AAS 24 “Consolidated Financial Reports”, applied in conjunction with Accounting Standard AASB 1013 and Australian Accounting Standard AAS 18 “Accounting for Goodwill” and Accounting Standard AASB 1015 and Australian Accounting Standard AAS 21 “Acquisitions of Assets”, does not give rise to a requirement to subsequently revalue those assets in the consolidated financial statements;
- permits entities to change from the cost basis to the fair value basis, or to discontinue applying the fair value basis, to measure a class of non-current assets at any time in the future, only if such a change satisfies the criteria for a voluntary change in accounting policy in Accounting Standard AASB 1001 and Australian Accounting Standard AAS 6 “Accounting Policies”;
- prescribes the method of accounting for revaluation increments and decrements;
- requires the gain or loss on disposal of a non-current asset to be measured as the difference between the carrying amount and the net proceeds from disposal; and
- requires various disclosures about non-current assets, including a reconciliation of the carrying amount of each class of property, plant and equipment at the beginning and end of the reporting period.
Portions of AASB 1041 have been superceded by AASB 116.