PP&E and Impairment — ASC 360 / IAS 16 / IAS 36

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).

• Componentization and useful-life/residual estimates.
• Impairment indicators and the cash-flow forecasts behind recoverable amount.
• CGU / asset-group identification — the unit at which impairment is tested.
• Revaluation (IFRS) — frequency, the revaluation surplus in OCI.

• SAP implementation: SAP Asset Accounting (FI-AA) — depreciation areas carry the parallel US and IFRS valuations; unplanned depreciation and (IFRS) write-ups implement the impairment differences.

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.