IAS 16 Property Plant and Equipment FAC 3702

IAS 16 Property Plant and Equipment FAC 3702

IAS 16 Property Plant and Equipment MEASUREMENT AFTER RECOGNITION Cost Model or Revaluation Model

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

IAS 16 Property Plant and Equipment What is the useful life of Land Buildings in General ? Land Buildings are two separate assets and thus their useful lives are separate. Buildings may have a limited useful life.

IAS 16 Property Plant and Equipment

IAS 16 Property Plant and Equipment

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.

IAS 16 Property Plant and Equipment

IAS 16 Property Plant and Equipment Revaluation – Considerations

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?

IAS 16 Property Plant and Equipment Depreciation

IAS 16 Property Plant and Equipment