Property, Plant & Equipment

Definition
1. tangible items that are
  1. held for use - production / supply of goods & services, rental to others / administrative purposes
    1. Mode of usage
  2. expected to be used during more than one period
    1. term of holding by an entity
Applicable Std & Scope
1. IAS 16
  1. except
    1. another accounting std requires diff. accounting treatment
    2. doesn't apply to some items of PPe within the scope of other accounting stds
      1. Assets held for sale (IFRS 5)
      2. Biological assets (IAS 41)
      3. Exploration & evaluation assets (IFRS 6)
Recognition
1. Cost = Asset, only if
  1. probable - future economic benefits - flow to the entity
  2. cost of the item - measured reliably
2. After PPE has been recognised as asset - may incur additional cost on the PPE
  1. maintenance costs
  2. give rise to future economic benefits
3. Day-to-day servicing (repair & maintenance) = expenses
  1. major spare parts, servicing equipments, replacement & inspection of PPE = asset (if recognition criteria is met)
Measurement
1. At recognition
  1. cost
    1. Purchase price
    2. Directly attributable Cost
    3. Dismantling Cost
  2. carrying amount of an item - ceases when
    1. yet to be brought into use / just launched / operated less than full capacity
    2. Initial operating losses
    3. costs of relocating part / all of an entity's operations
  3. acquired in exchange
    1. fair value
      1. except
        lack of commercial substances
        fair value is not reliably measured
2. After recognition
  1. Cost Model
  2. Revaluation Model
    1. Surplus
    2. Deficit
Depreciation
1. systematic allocation - depreciable amount - an asset over its useful life
  1. shall be recognised in the P&L unless included in the carrying amt of another asset
2. calculate
  1. commencement / cessation of depn.
  2. depreciable amt. (incl. residual value) of asset
  3. useful life of asset
  4. depn. method
Derecognition
1. on disposal
  1. IAS 18
    1. sales of goods
  2. IAS 17
    1. sale & leaseback
2. no future economic benefit - expected - its use / disposal
3. gain / loss - P&L
  1. gain ≠ revenue
Disclosure
1. measurement bases used for determining - gross carrying amt.
2. depn. methods used
3. useful lives / depn. rates used
4. gross carrying amt. & acc. depn. (plus acc. impairment losses) - beginning & end of the period

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Property, Plant & Equipment

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	Criado por Thiffany Martin aproximadamente 10 anos atrás