Fac 3702

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Fac 3702

• IAS 16 Property Plant and Equipment

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IAS 16 Property Plant and Equipment

• MEASUREMENT AFTER RECOGNITION
• Cost Model or
• Revaluation Model

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IAS 16 Property Plant and Equipment

• 1. How do PPE become part of the Income
  statement?
• Depreciation
• 2. Is there a portion of the asset not
  depreciable?
• Residual Value

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IAS 16 Property Plant and Equipment

• What is the useful life of Land and Buildings in
  General ?
• Land and Buildings are two separate assets and
  thus their useful lives are separate.
• Buildings may have a limited useful life.

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IAS 16 Property Plant and Equipment

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IAS 16 Property Plant and Equipment

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IAS 16 Property Plant and Equipment

• Review carrying amounts at B/S date if there are
  indicators of impairment
• Impairment occurs if recoverable amount is less
  than carrying amount
• Prior Impairment losses may be reversed
• Details of impairment dealt with in IAS 36
  Impairment of assets.

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IAS 16 Property Plant and Equipment

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IAS 16 Property Plant and Equipment

• Revaluation Considerations

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IAS 16 Property Plant and Equipment

• Revaluation Methods
• 1 Applies if fair value of PPE can be measured
  reliably
• 2 Carry at revalued amount which means
• 3 Revaluation to be made with sufficient
  regularity. Why?

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IAS 16 Property Plant and EquipmentDepreciation
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IAS 16 Property Plant and Equipment