Page 6 - Finac1 Test 3 slides - 1. Property, Plant and Equipment
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TEST 3 PREPARATION
Outcomes
• Identify the scope and purpose of IAS 16.
• Learn and apply IAS 16 definitions.
• The recognition of the original and subsequent cost in respect of
property, plant and equipment.
• The measurement of property, plant and equipment when recognised,
including the measurement of the cost components, as well as when
capitalisation of costs stops and the measurement in the case where
assets are swopped.
• The measurement of property, plant and equipment, subsequent to
initial recognition:
• Cost model: Assets are carried at cost less accumulated depreciation and
accumulated impairment losses.
• Revaluation model: Assets are carried at a revalued amount, i.e. the fair value at
the date of revaluation, less subsequent accumulated depreciation and
accumulated impairment losses.
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