IAS 16 Property, Plant and Equipment outlines the accounting treatment for most types of property, plant and equipment. 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.
IAS 16 was reissued in December 2003 and applies to annual periods beginning on or after 1 January 2005.
“IAS 16- Property, Plant and Equipment ” Iasplus.com. N.p., 2016. Web. 18 Sept. 2016.
Required:
Part A:
Study IAS 16 Property, Plant and Equipment and write a report covering following –
- Objective and recognition criteria of IAS 16
- Allowable models for measurement after initial recognition
- Characteristics of depreciation
- Need for depreciation
- Basic factors considered for determination of method of depreciation.
- The impact on the financial statements if a company changes from a current method of depreciation to a new method (Illustrate with a numerical example)
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