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COMPARATIVE OF ASSET ON ACCOUNTING TREATMENT AND RECOGNITION - Coggle…

- - - - For Admiistrative Purpose
      - Held for use in the Production
        OR held for use in Supply of Goods or Services
      - 1 Tangible Items
      - For Rental to Others
      - Expected to be used more than one period
    - - Future economic benefit will flow to the entity
      - Can be measured reliably
  - - - Can be measured reliably
      - Future economic benefit will flow to the entity
    - - Control as a result of Past Events
  - - - In the Process of Production for such sale
      - Held for Sale in the Ordinary Course of Business
      - In the Form of Materials or Supply to be consumed in the Production Process
        OR
        In Rendering Services
  - - - Held by the Owner
        OR Held by the Lessee a a Right-of-Use Asset
      - To Earn Rentals
        OR for Capital Appreciation
        OR Both
        
        Capital Appreciation Presumption
        
        IF the acquisition of the Land has no clear intention of use - presumption is for capital appreciation
      - Land OR a Building
        OR part of a Building
        OR both Land and Building
        
        Intention of Use
        
        NOT separable
        
        What is Significant
        
        IP - if portion is more significant
        
        whole portion is PPE - if the portion to use it as PPE is more significant
        
        Separable
        
        owner occupied
        
        for rental
        
        IP
        
        PPE
        
        determine separability at the end of accounting period
    - - Future Economic Benefit will flow to the Entity
      - Can be Measured Reliably
- - - - alternative choice
    - - benchmark of primary choice
  - - - Cost
      - NRV
  - - - alternative choice
    - - benchmark of primary choice
      - FVTPL model
- - - - Fair Value less Cost to Sell
        
        Reason
        
        IF alternative FV measurment is clearly unreliable
        
        IF quoted market price is not available
        
        FV is hard to determine compared to agricultural produce
        
        Exemption
        
        use Cost Model
        
        Subsequent Measurement
        
        Cost
        Less: Accumulated Depreciation
        Less: Accumulated Impairment Losses
        
        Initial Measurement
        
        at Cost
        
        the cost model can only be used on initial measurement IF fair value cannot be determined
        
        Shift to FV less CTS if FV is available in the future
        
        Cost to Sell
        
        Incremental Cost to dispose an asset
        
        Fair Value
        
        Quoted Market Price in Active Market for Similar item or non-active market for identical Asset
        
        Unobservable Input
        
        Quoted Market Price in Active Market for Identical Asset
    - - Initial Measurement
        
        at the point of harvest
        
        FV less CTS
        
        this will becom the initial cost of Inventories
      - Subsequent Measurement
        
        becomes Inventory under PAS 2
        
        Lower of Cost or NRV
  - - - Includes Transaction Cost