Where must depreciated capital assets be distinguished from significant capital assets not being depreciated?

Depreciated capital assets must be clearly distinguished from significant capital assets that are not being depreciated for clarity and transparency in financial reporting. This distinction is important because it helps users of financial statements understand the financial position and the nature of the capital assets owned by the entity.

Presenting this information on the face of the statement of net assets provides immediate visibility to stakeholders regarding the composition of the capital assets. It allows users to quickly assess which assets are subject to depreciation and how that affects the organization's resources and obligations.

Additionally, including this information in the notes to the financial statements provides an opportunity for further clarification and context. The notes can include detailed information such as the reasons why certain capital assets are not being depreciated, the methods used for depreciation of the capital assets, and any relevant policies related to asset management. This additional detail supports more informed decision-making by users of the financial statements.

Since both the statement of net assets and the notes to the financial statements serve important roles in providing a comprehensive view of capital assets, it is necessary to distinguish depreciated assets from non-depreciated significant capital assets in both locations. This comprehensive approach ensures that users have access to all pertinent information regarding asset valuation and financial health.