Which statement is FALSE regarding required disclosures for capital assets?

The statement regarding accumulated depreciation being reported in total is not accurate in the context of capital asset disclosures. Typically, accounting standards require that accumulated depreciation be reported separately for each class of capital assets rather than as a consolidated total. This provides more granular information about the extent of depreciation associated with each asset class, allowing for a clearer understanding of the value and condition of the capital assets held by the entity.

The correct approach emphasizes transparency and assists users of financial statements in evaluating the overall financial health and performance related to capital assets. By detailing accumulated depreciation by asset class, stakeholders can better assess the potential future economic benefits of these assets. This specificity enhances the quality of financial reporting, making it critical for disclosures related to capital assets.

Other disclosures, such as separately reporting nondepreciating assets, disclosing depreciation expense by function, and presenting changes in capital assets by major asset class, are all in line with established accounting standards that demand detailed and clear information in financial statements regarding capital assets.