Scribd Logo
Upload

Welcome to Scribd!

  • 101 views

    IAS 16 Notes

    Uploaded by

    shoaib jamshed
    IAS 16 outlines the accounting requirements for property, plant, and equipment. It addresses the initial recognition and measurement of property, plant, and equipment at cost. Cost includes the purchase price, import duties, non-refundable taxes, and any costs to bring the asset to its working condition. It also allows for the use of the cost model, where assets are carried at cost less accumulated depreciation, or the revaluation model, where assets are carried at fair value less subsequent depreciation. Depreciation is systematically allocated over the useful life of an asset and is determined by the depreciation method that best reflects the pattern of consumption. Impairment losses are recognized if the recoverable amount of an asset is less

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    IAS 16 Notes

    Uploaded by

    shoaib jamshed
    101 views2 pages
    IAS 16 outlines the accounting requirements for property, plant, and equipment. It addresses the initial recognition and measurement of property, plant, and equipment at cost. Cost includes the purchase price, import duties, non-refundable taxes, and any costs to bring the asset to its working condition. It also allows for the use of the cost model, where assets are carried at cost less accumulated depreciation, or the revaluation model, where assets are carried at fair value less subsequent depreciation. Depreciation is systematically allocated over the useful life of an asset and is determined by the depreciation method that best reflects the pattern of consumption. Impairment losses are recognized if the recoverable amount of an asset is less

    Original Title

    IAS+16+Notes

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    IAS 16 outlines the accounting requirements for property, plant, and equipment. It addresses the initial recognition and measurement of property, plant, and equipment at cost. Cost includes the purchase price, import duties, non-refundable taxes, and any costs to bring the asset to its working condition. It also allows for the use of the cost model, where assets are carried at cost less accumulated depreciation, or the revaluation model, where assets are carried at fair value less subsequent depreciation. Depreciation is systematically allocated over the useful life of an asset and is determined by the depreciation method that best reflects the pattern of consumption. Impairment losses are recognized if the recoverable amount of an asset is less

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    101 views2 pages

    IAS 16 Notes

    Uploaded by

    shoaib jamshed
    IAS 16 outlines the accounting requirements for property, plant, and equipment. It addresses the initial recognition and measurement of property, plant, and equipment at cost. Cost includes the purchase price, import duties, non-refundable taxes, and any costs to bring the asset to its working condition. It also allows for the use of the cost model, where assets are carried at cost less accumulated depreciation, or the revaluation model, where assets are carried at fair value less subsequent depreciation. Depreciation is systematically allocated over the useful life of an asset and is determined by the depreciation method that best reflects the pattern of consumption. Impairment losses are recognized if the recoverable amount of an asset is less

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    IAS 16 PROPERTY PLANT AND EQUIPMENT EXTRACTS

    IAS 16
    Initial Recognition
    1. Initial recognition at cost (15)
    a. Cost(Def) Cash/fair value of the consideration given
    b. Elements of cost (16 20)
    i. Purchase price
    1. Import duties
    2. Non-refundable directly attributable taxes
    ii. All cost to bring the asset into usable conditions as intended by
    management
    1. Employee costs
    2. Delivery costs
    3. Installation and assembly costs
    4. Testing costs
    5. Legal/Professional costs
    iii. Committed Dismantling costs (IAS 37 Ref)
    c. Cost Measurement
    i. Payment is deferred beyond normal credit terms discounted
    price (23)
    ii. Exchange (24)
    1. Exchange has commercial substance
    a. FV of the asset given up can be measured Record
    at FV of asset given up
    b. FV of asset given up cannot be measured Record
    at FV of asset obtained
    c. FV of both assets are not available Record at CV
    of asset given up
    2. Exchange does not have commercial substance Record
    at CV of asset given up
    Subsequent Recognition
    1. Cost Model (29 30) Cost less accumulated depreciation
    2. Revaluation Model (31) FV at revaluation date less subsequent accumulated
    depreciation
    a. Revaluation Increase (39)
    Dr

    Asset

    XX

    Cr

    OCI

    XX

    Dr

    OCI

    XX

    Cr

    Revaluation Surplus

    XX

    b. Revaluation Decrease (40)

    IAS 16

    BILAL ZIA

    IAS 16 PROPERTY PLANT AND EQUIPMENT EXTRACTS

    Dr

    Income Statement

    XX

    Cr

    Asset (NBV)

    XX

    3. Depreciation (43 54, 59 62) all variable checked annually


    a. Depreciable amount
    i. Residual value (51) (Def)
    b. Depreciation Period
    i. Useful life vs Economic life (57) (Def)
    c. Depreciation Method Reflect the pattern of consumption
    i. Straight line method
    ii. Reducing balance method
    iii. Number of production units
    4. Impairment (63 65) (Def) Recoverable amount (RA) < Carrying value
    a. RA = higher (FVLCTS vs VIU) (IAS 36)
    De-recognition (67 72)
    5. Gain/loss (Net sale proceeds CV) recognized in Income statement
    6. Transfer Revaluation surplus to Retained Earnings

    IAS 16

    BILAL ZIA

    You might also like