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    12 Pdfsam IAS

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    dskrishna
    The document discusses accounting policies for property, plant, and equipment under IAS 16. It states that the cost of dismantling and removing an item and restoring its site must be estimated initially and recognized over the item's use. After recognition, an entity can choose the cost model, carrying the asset at cost less depreciation and impairment, or the revaluation model, carrying the asset at fair value less subsequent depreciation and impairment. Depreciation is the systematic allocation of an asset's depreciable amount over its useful life, and the depreciation method must reflect the asset's expected consumption of economic benefits. An item is derecognized when disposed of or when no future benefits are expected.

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    12 Pdfsam IAS

    Uploaded by

    dskrishna
    30 views1 page
    The document discusses accounting policies for property, plant, and equipment under IAS 16. It states that the cost of dismantling and removing an item and restoring its site must be estimated initially and recognized over the item's use. After recognition, an entity can choose the cost model, carrying the asset at cost less depreciation and impairment, or the revaluation model, carrying the asset at fair value less subsequent depreciation and impairment. Depreciation is the systematic allocation of an asset's depreciable amount over its useful life, and the depreciation method must reflect the asset's expected consumption of economic benefits. An item is derecognized when disposed of or when no future benefits are expected.

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    The document discusses accounting policies for property, plant, and equipment under IAS 16. It states that the cost of dismantling and removing an item and restoring its site must be estimated initially and recognized over the item's use. After recognition, an entity can choose the cost model, carrying the asset at cost less depreciation and impairment, or the revaluation model, carrying the asset at fair value less subsequent depreciation and impairment. Depreciation is the systematic allocation of an asset's depreciable amount over its useful life, and the depreciation method must reflect the asset's expected consumption of economic benefits. An item is derecognized when disposed of or when no future benefits are expected.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views1 page

    12 Pdfsam IAS

    Uploaded by

    dskrishna
    The document discusses accounting policies for property, plant, and equipment under IAS 16. It states that the cost of dismantling and removing an item and restoring its site must be estimated initially and recognized over the item's use. After recognition, an entity can choose the cost model, carrying the asset at cost less depreciation and impairment, or the revaluation model, carrying the asset at fair value less subsequent depreciation and impairment. Depreciation is the systematic allocation of an asset's depreciable amount over its useful life, and the depreciation method must reflect the asset's expected consumption of economic benefits. An item is derecognized when disposed of or when no future benefits are expected.

    Copyright:

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    Download as pdf or txt
    of 1

    (c) the initial estimate of the costs of dismantling and removing the item and restoring the site

    on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period. Measurement after recognition: An entity shall choose either the cost model or the revaluation model as its accounting policy and shall apply that policy to an entire class of property, plant and equipment. Cost model: After recognition as an asset, an item of property, plant and equipment shall be carried at its cost less any accumulated depreciation and any accumulated impairment losses. Revaluation model: After recognition as an asset, an item of property, plant and equipment whose fair value can be measured reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. If an assets carrying amount is increased as a result of a revaluation, the increase shall be recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss. If an assets carrying amount is decreased as a result of a revaluation, the decrease shall be recognised in profit or loss. However, the decrease shall be recognised in other comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that asset. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item shall be depreciated separately. The depreciation charge for each period shall be recognised in profit or loss unless it is included in the carrying amount of another asset. The depreciation method used shall reflect the pattern in which the assets future economic benefits are expected to be consumed by the entity. The residual value of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. To determine whether an item of property, plant and equipment is impaired, an entity applies IAS 36 Impairment of Assets. The carrying amount of an item of property, plant and equipment shall be derecognised: (a) on disposal; or (b) when no future economic benefits are expected from its use or disposal.

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