IAS 16 - Property, Plant & Equipment

Definition:
1. Asset held for continued use in the business for a period of more than 12 months
Treatment
1. Initially Recorded at cost
  1. Purchase price + Directly attributable costs + estimate to dismantle if contractually obligated
2. Subsequent expenditure
  1. If improves economic benefit
    1. Capitalise
  2. If repairs
    1. Revenue expense
3. Depreciation
  1. DO NOT DEPRECIATE LAND
  2. Reduce NCA on SOFP and P+L as expense
  3. Changes in Depreciation Method, UEL or residual value
    1. Treated as an accounting adjustment (IAS8)
      1. Only change current years f/s
  4. Methods: Straight line or reducing balance
    1. Tech. has most benefit in early years ti would use reducing balance
    2. Reviewed Regularly
4. Revaluations
  1. Choice
    1. Must continue regularly revaluing if start
    2. Must revalue all assets in same class of asset
  2. Disposal of Revalued asset
    1. Balance in revaluation reserve transferred to retained earnings, gain measued as difference between carrying value and proceeds
      1. Balance in SOCIE
  3. Disclosure
    1. Revalued amount
    2. Basis of revaluation
    3. Date of revaluation
    4. Whether it was done by a professional revaluer
  4. Treatment
    1. Dr Asset in SOFP Cr Revaluation Reserve in equity statement on SOFP
  5. IFRS 13 Revalue to fair value

Resumo de Recurso

	Criado por Michelle Brennan quase 9 anos atrás