Page 65 - SBR Integrated Workbook STUDENT S18-J19

Non-current assets

Property, plant and equipment

1.1 Definitions

IAS 16 Property, Plant and Equipment (PPE) defines PPE as tangible
items which are used to produce or supply goods, for rental, or for
administrative purposes over more than one period.

1.2 Summary of recognition and measurement

PPE

Cost to bring

Recognise asset to
initially at cost working
condition

Revalue
Depreciate Revaluation whole
over useful life Cost model model
class

Depreciate
over useful life

Profit or loss on
disposal in P/L
Revaluation
gains in OCI.
Revaluation
losses in P/L if
no reval surplus

Further detail can be found in Section 1 of Chapter 5 in your Study Text.

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