Page 163 - F1 Integrated Workbook STUDENT 2018
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NNon-curreent assets – Acquisition, Depreciiation annd Subseequent
Recoggnition
2.2 MMeasuremeent after innitial recoognition
IAS 16 Property, Plant and Equipmennt requires that entitiees’ apply either the coost
model oof the revaaluation moodel.
Cost Moddel R Revalulation Modeel
Carrrying amount = C Carrying amount ==
Cost Fair VValue
Lesss: L Less:
Accumuulated Accuumulatedd
Deprecciation Deppreciation
Lesss: L Less:
Accumuulated Accuumulatedd
impairment imppairment
lossses loosses
An eentity may decide to use a commbination oof these twoo models ffor
meaasuring asssets but must make ssure that eeach class of asset uses the
samme model
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