Report phase

The board-pack view of a capitalised AI asset

Report

The board-pack view presents the capitalised AI asset as a small set of KPIs the board can track: carrying amount, period amortisation charge, any impairment, and the return net of that drag. It draws on the same schedule that feeds the disclosure note, so the board and the auditor read consistent numbers IAS 38 §118.

The KPIs that belong

Closing carrying amount, and its trend over the life of the asset.
Period amortisation charge, the drag the capitalise decision created.
Any impairment loss, flagged distinctly with its triggering event.
Net return, benefits less amortisation charge less run-phase inference cost.

The carrying-amount trend

The single most useful chart for the board is the carrying-value ladder: a descending line that shows the asset being consumed and, where it happens, an impairment notch. It communicates in one image what the reconciliation says in a table, and it is the same ladder the disclosure note reconciles.

Carrying-value ladderIllustrative example

A board-pack carrying-value trend with a Year 2 impairment notch. Illustrative example.

Reconciling to the note

The board view is an internal presentation, not a statutory one, but its credibility comes from agreeing with the audited numbers. The carrying amount in the pack equals the closing line of the reconciliation; the amortisation KPI equals the charge in the note; the impairment KPI equals the disclosed loss. When these tie, the board can trust the pack and the auditor has nothing to reconcile IAS 38 §118.

What FP&A needs from the schedule

FP&A needs the schedule at period granularity, the method and useful-life assumptions behind it, and a flag for any change in estimate so forecasts can be reforecast prospectively IAS 38 §104. With those, the board view updates each period from one source rather than a parallel model that can drift from the accounts.