The carrying-value roll-forward under IAS 38 paragraph 118

The lines the reconciliation requires

The reconciliation moves from opening carrying amount to closing carrying amount through defined movements: additions, being capitalised development-phase spend posted across the bridge; the amortisation charge for the period; any impairment losses recognised; any reversals; and other movements such as disposals IAS 38 §118. For a token-built asset the additions line is where the token ledger meets the disclosure.

Gross versus net presentation

The reconciliation can be presented on a gross basis, showing cost and accumulated amortisation and impairment separately, or on a net carrying-amount basis. IAS 38 requires the movements to be shown; the choice of gross or net presentation follows the entity's disclosure policy, applied consistently. The table above is a net carrying-amount view; a gross view would split the closing figure into cost less accumulated amortisation and impairment.

Applying it to capitalised token spend

Two features are specific to a token-built asset. The additions line ties to the aggregated development-phase token-ledger rows for the period, so it is traceable to source. The impairment line tends to be larger and more frequent than for conventional software, because model obsolescence drives write-downs IAS 36 §18. A clean roll-forward makes both visible rather than buried in a net movement.

How the builder produces it

The AmortisationLadder builder outputs this reconciliation directly. Setting the initial carrying amount, useful life, method, residual value and any impairment event produces the opening, amortisation, impairment and closing lines period by period, in paragraph 118 shape, ready to lift into the note. Every figure it produces is an illustrative example.