Page 5 - PowerPoint Presentation
P. 5
PROPERTY, PLANT AND EQUIPMENT
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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