Ias 16 property, plant and equipment ppe covers the aspects of accounting for property, plant and equipment and represents the list of items falls into tangib. Impairment or loss of items of property, plant and equipment and any. Ias 16 property, plant and equipment 2017 07 4 cash price equivalent the cost of an item of property, plant and equipment is the cash price equivalent at the recognition date. Ias 16 property, plant and equipment sets out the requirements for the recognition of the assets, the determination of their carrying amounts, and the depreciation charges and impairment losses in relation to them. The disclosures required under ias 16 for property, plant and equipment, and under ias. Ias 16 property, plant and equipment cpa australia. Property, plant and equipment proceeds before intended use. Paragraphs that have been added to this standard and do not appear in the text of ias 16 are identified with the. Ias 16 property, plant and equipment croneri tax and accounting. Ias 16 property, plant and equipment ias 16 property. This bibliography was generated on cite this for me on tuesday, august 6, 2019 ebook or pdf. Ias 16 property, plant and equipment ifrs standards tracker icaew.
Especially when based on straight line method of depreciation reply. Ias 16 property, plant and equipment a closer look. Ias 16 outlines the accounting treatment for most types of property, plant and equipment. Ias 16 property, plant and equipment phnom penh hr. Ias 16 property, plant and equipment may 2009 disclosure of idle assets and construction in progress the ifric received a request for more guidance on the extent of required disclosures relating to property, plant and equipment temporarily idle or assets under construction when. However, this standard applies to property, plant and equipment used to public sector develop or maintain the assets described in 5a or 5b. Ias 16 property, plant and equipment ifrs standards tracker. Acca p2 property, plant and equipment ias 16 revaluation increase duration.
Ias 16 property, plant and equipment adeel august 18, 2016 august 23, 2016 2 comments on summary notes. Property, plant and equipment ias 16 and borrowing. This course is part of the ifrs certificate program a comprehensive, integrated curriculum that will give you the foundational training, knowledge, and practical guidance in international accounting standards necessary in todays global business environment this selfstudy course addresses requirements of ias 16, property, plant and equipment, and ias 23, borrowing costs, including the. Key clarifications provided in the faqs on significant implementation issues are as follows. Ias 16 property, plant and equipment 2017 07 2 cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when. Shahreen sonia lecturer, advanced accounting department of business administration dba green university of bangladesh gub submitted by. Iasb proposes to amend ias 16 in relation to the accounting for proceeds from selling items produced before an item of property, plant and equipment is available for use 2 the iasb considered making amendments to limit the deductions from the cost of ppe to proceeds from testing, and that the deduction could not exceed the costs of testing. Ias 16 property, plant and equipment march 2016 property, plant and equipment and ias 38 intangible assetsvariable payments for asset purchases the interpretations committee received a request to address the accounting for variable payments to be made for the purchase of an item of property, plant and equipment or an intangible asset that. Ias 16 property, plant and equipment ifrs standards. What are the positive and negative international critique. Certain industries affected, such as extractive and petrochemical. Property, plant and equipment comprises tangible assets held by an entity for use in the production or supply of goods or services, for rental to others or for administrative purposes, that are expected to be used for more than one period. It incorporates relevant amendments made up to and including 12 december 2014.
The 2011 improvements project amended international accounting standards ias 16 to clarify that major spare parts and standby equipment are recognised as ppe if they meet the definition of ppe, failing which they are recognised as inventories under ias 2. Ias 16 establishes principles for recognising property, plant and equipment as assets, measuring their carrying amounts, and measuring the depreciation charges and impairment losses to be recognised in relation to them. Exposure draft ed 2017 4 property, plant and equipmentproceeds before intended use proposed amendments to ias 16 is published by the international accounting standards board board for comment only. The ifrs foundations logo and the ifrs for smes logo, the iasb logo, the hexagon device, eifrs, ias, iasb, ifric, ifrs, ifrs for smes, ifrs foundation, international accounting standards, international financial reporting standards, niif and sic are registered trade marks of the ifrs foundation, further details of which are available from the ifrs. Shahreen sonia lecturer, advanced accounting department of business administration dba green. International accounting standard 16 property, plant and equipment objective 1 the objective of this standard is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entitys investment in its property, plant and equipment and the changes in such. Sfrsi 116 should be read in the context of its objective, the preface to singapore financial reporting standards international, the conceptual framework for financial reporting. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated so that its depreciable amount is allocated on a systematic basis over its useful life. Pptx new latest free download as powerpoint presentation. Property, plant and equipment is initially measured at its cost. Ias 16 property, plant and equipment ifrsbox making ifrs easy.
March 2017 this communication contains a general overview of the topic and is current as of march 31, 2017 the application of the principles addressed will depend upon the particular facts and circumstances of each individual case. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated so that its depreciable amount is allocated on a systematic basis over its useful. Ias 16 was reissued in december 2003 and applies to annual periods. In 1998, ias 16 revised by ias 36, impairment of assets. Ias 16 property plant and equipment quiz chartered. Valuation at depreciated replacement cost is allowed when there is no real market value, because of the specialised nature of the assets.
Ias 16 property, plant and equipment sets out the requirements for the recognition of the assets, the. Jun 16, 2017 ias 16 asset is a resource which is controlled by the entity, as a result of past event and from which economic benefit are expected to flow to the entity in an ias 16 definition, you have noticed that control term used rather than ownership, this may not be the case every time. However, ias 16 is dedicated to treating noncurrent assets used for business operations whereas ias 40 is predominantly concerned with noncurrent assets held for rental, capital appreciation or. Adeel july 20, 2016 july 12, 2016 no comments on question 8. Iasb ed20174 property, plant and equipment proceeds before intended use proposed amendments to ias 16 draft comment letter page 3 of 4 question proposed amendment the iasb is proposing to amend ias 16 to prohibit deducting from the cost of property, plant and equipment any proceeds from selling items produced while bringing that. You have to finish following quiz, to start this quiz. The same rule for revaluation of property applies to plant and equipment. This article is designed to outline the key areas of ias 16, property, plant and equipment that you may be required to attempt in the financial reporting exam. Ias 16 \u2014 property, plant and equipment ias 16. Which one of the following options complies with ias 16. The ed proposes to amend ias 16 property, plant and equipment ias 16 to prohibit deducting from the cost of an item of property, plant and equipment. Ias 16 property, plant and equipment ifrsbox making. Property, plant and equipment this compiled standard applies to annual reporting periods beginning on or after 1 january 2016 but before 1 january 2017.
Sic6 was superseded by and incorporated into ias 16 2003. Exposure draft ed20174 property, plant and equipmentproceeds before intended use proposed amendments to ias 16 is published by. Ias 16 property, plant and equipment kpmg in india. Property, plant and equipment business interruption other recoveries 2. However, there are difficulties of obtaining a market value for plant and equipment that are recognised in ias 16. Prepared on 21 august 2015 by the staff of the australian accounting standards board. Ias 16 property, plant and equipment download pdf, 389kb ias 16 property, plant and equipment change in estimate, ias 16, ifrs, journal entries, revaluation. What are the positive and negative international critique for. Ias 16 asset is a resource which is controlled by the entity, as a result of past event and from which economic benefit are expected to flow to the entity in an ias 16 definition, you have noticed that control term used rather than ownership, this may not be the case every time. The proposals may be modified in the light of the comments received before being issued in final form. Apr 17, 2014 property plant and equipment ias 16 assignment 1.
Educational material on ind as 16, property, plant and. Property, plant and equipment are tangible items that. Ias 16 is applied in accounting for property, plant and equipment. Lkas 16 sri lanka accounting standardlkas 16 property, plant and equipment sri lanka accounting standard lkas 16 property, plant and equipment is set out in paragraphs 181. The session discusses the measurement of cost of ppe. Other international public sector accounting standards may require recognition of an item of property, plant and equipment based on an approach. This supplement focuses on the disclosure requirements in ifrs 16. Ias 16 property plant and equipment acca study material. Accounting for proceeds before an assets intended use. Find out more about the benefits of membership and joining details. Difference between ias 16 and ias 40 compare the difference. The objective of this standard is to prescribe the accounting treatment for property, plant, and equipment so that users of financial statements can discern information about an entitys investment in its property, plant, and equipment and the changes in such investment. These are the sources and citations used to research ias 16 property, plant and equipment.
Property, plant and equipment proceeds before intended use amendments to ias 16 issued. Find out more to address diversity in practice and improve financial reporting, the iasb is. Property, plant, and equipment ipsas 17 objective 1. Leases, which are due to become effective for annual periods beginning on or after 1 january 2019. Ias 16 fixed asset revalualtion powered by finatek. On 20 june 2017, the international accounting standards board iasb issued exposure draft ed property, plant and equipment proceeds before intended use proposed amendments to ias 16. This communication contains a general overview of the topic and is current. International accounting standard 16 property, plant and. Iasb ed20174 property, plant and equipment proceeds before intended use proposed amendments to ias 16 draft comment letter page 3 of 4 question proposed amendment the iasb is proposing to amend ias 16 to prohibit deducting from the cost of property. Lkas 16 should be read in the context of its objective and the basis for conclusions, the. Ias 16 property, plant and equipment download pdf, 651kb. Ias 16 property, plant and equipment and ias 40 investment property are very similar in nature and share certain common guidelines as well. Sfrsi 116 3 singapore financial reporting standard international 116 property, plant and equipment sfrsi 116 is set out in paragraphs 1 83 and the appendix. Sic14 property, plant and equipment compensation for the impairment or loss of items.
Approval by the board of exposure draft property, plant and equipmentproceeds before intended use published in june 2017 the exposure draft property, plant and equipmentproceeds before intended use proposed amendments to ias 16 was approved for publication by twelve of the thirteen members of the international accounting standards board. It provides ifrs 16 disclosure examples and explanations as a supplement to the september 2017 guide. The international accounting standard comparable with hkas 16 is ias 16 property, plant and. Ias 16 cost of property plant and equipment youtube.
Cima f1 ias 16 property, plant and equipment initial recognition duration. Chapter 3 ias 16 property, plant and equipment previous post. It replaced ias 16 accounting for property, plant and equipment issued in march. The iasc issued revised ias 16, accounting for property, plant and equipment, in december 1993, as part of the comparability of financial statements. Hong kong accounting standard 16 property, plant and equipment hkas 16 should be. Ias 16 property, plant and equipment outlines the accounting treatment for most types of property, plant and equipment. Iasb proposes amendments to ias 16 to reduce diversity in practice press release issued by the iasb on 20 june 2017 announcing proposed narrowscope amendments to the standard relating to sales proceeds from the cost of an item of property, plant and equipment while that asset is being made available for use. Dec 11, 2014 cima f1 ias 16 property, plant and equipment initial recognition duration.
Sri lanka accounting standardlkas 16 property, plant and. Some of the positive aspects related to ias 16 are. Ifrs 17 insurance contracts may 2017 add paragraphs 29a and 29b with. Systems, jahangirnagar university, savar, slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. It was issued by iasb in december 1993 and concerns the accounting related to property, plant and equipment. Ias 16 property, plant and equipment other bibliographies.
It decided to revalue some of its property, plant and equipment. If payment is deferred beyond normal credit terms, the difference between the cash price equivalent and the total payment is. International accounting standard 16 property, plant and equipment or ias 16 is an international financial reporting standard adopted by the international accounting standards board iasb. Sale proceeds no longer deducted from the cost of an asset before its intended use. International accounting standard 16 property, plant and equipment ias 16 replaces ias 16 property, plant and equipment revised in 1998, and should be applied for annual periods beginning on or after 1 january 2005. Proceeds before intended use proposed amendments to ias 16. The accounting for insurance compensation for property, plant and equipment is addressed in both ias 16 property, plant and equipment and ias 37. Ias 16 establishes principles for recognising property, plant and equipment as assets, measuring their carrying amounts, and measuring the depreciation. Ias 16 prescribes that the carrying amount of an item of property, plant and equipment shall be derecognized on disposal. Exposure draft ed20174 property, plant and equipmentproceeds before intended use proposed amendments to ias 16 is published by the international accounting standards board board for comment only. Accounting for property, plant and equipment acca global. Standard ias 16 prescribes the accounting treatment for property, plant and equipment and therefore it is one of the most important and commonly applied standards the main issues dealt in ias 16 are recognition of property, plant and equipment, measurement at and after recognition, impairment of property, plant and equipment although ias 36 deals with impairment in more detail and. Aasb 116 and ias 16 aasb 116 property, plant and equipment as amended incorporates ias 16 property, plant and equipment as issued and amended by the international accounting standards board iasb. Ias 16 property, plant and equipment may 2009 disclosure of idle assets and construction in progress the ifric received a request for more guidance on the extent of required disclosures relating to property, plant and equipment temporarily idle or assets under construction when additional construction has been postponed.