1. IAS 16 Property Plant and Equipment
Fac 3702
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2. IAS 16 Property Plant and Equipment
MEASUREMENT AFTER RECOGNITION
Cost Model or
Revaluation Model
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3. 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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4. 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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5. IAS 16 Property Plant and Equipment
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6. IAS 16 Property Plant and Equipment
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7. 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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8. IAS 16 Property Plant and Equipment
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9. IAS 16 Property Plant and Equipment
Revaluation – Considerations
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10. IAS 16 Property Plant and Equipment
Revaluation Methods
1 Applies if fair value of PP&E can be measured reliably
2 Carry at ‘revalued amount’ which means…
3 Revaluation to be made with sufficient regularity. Why?
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11. IAS 16 Property Plant and Equipment Depreciation
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12. IAS 16 Property Plant and Equipment
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