Zusammenfassung der Ressource
IAS 16 Property, Plant & Equipment
- Introduction
- Tangible asset which is held for use
- In the production of goods and services
- Plant and machinery
- as rental to somebody
- a building may be rented out to somebody else
- for administrative purposes
- a factory or building which
may be used for
administrative purposes
- Should be held for more than one
accounting period
- Recognised as an asset
- Future economic benefits
associated with the asset will
flow through the entity
- Not always directly attributable
- Cost can be measured reliably
- Initial measurement
- Cost
- Purchase price
- Less rebates, discounts,
refundable taxes
- Plus directly attributable costs
- Instalation, site preparation,
professional fees
- Administrative or general overhead costs, advertising or staff training costs are not classed as costs
- These costs are required to
bring the asset to use
- Borrowing costs
- Subsuquent cost
- Where expenditure improves
the asset the cost should be
added
- Modifying the asset to
increase its useful life
- Upgrading to improve output
- Estimated removal costs
- Dismantling an asset
before disposal
- Measurement after recognition
- Cost model
- Not a fair and true view
- Historical cost
- Less accumulated depreciation
- Less accumulated impairment
- Revaluation model
- Fair value cost
- Market value of the asset
- Less subsequent depreciation
- Less subsequent impairment
- Check fair value of asset regularly
- Revalue entire class of assets
- Carrying amount of the asset
after revaluation
- Increase (gain)on carrying amount
- Debit asset cost account (to make cost
equal to valuation
- Credit revaluation reserve
- Revaluation
- Increase
- Credit revaluation reserve
- Decrease
- Debit revaluation reserve(to equal credit balance)
- Debit P & L a/c with any remaining amount
- Credit asset cost account
- If the item is sold
- Balance on revaluation reserve
- Retained earnings
- Decrease (loss)on carrying amount
- Debit P & L a/c
- Credit asset cost account
- Depreciation
- Components can be
depreciated separately
- Reduction in the value of an asset
- Cost-residual value
- Method
- Staight line
- Diminishing
balance
- Useful life
- Depreciation charge
- Recognised in P & L a/c
- expected wear
and tear, expiry
date and usage
- Should be reviewed annually
- If change in pattern of
consumption of benefits,
then change depreciation
method
- All tangible non current assets must
be depreciated whether they are
held at cost or fiar value, unless the
residual value exceeds the carrying
amount(in which case the
depreciation amount will be zero)
- With the exception of land
- Derecognition
- Sale of an asset or no future
economic benefit left in it
- Gain or loss in disposal
- Difference between proceeds
and carrying amount
- Shown in P & L a/c