Please enable JavaScript.
Coggle requires JavaScript to display documents.
PROPERTY, PLANT & EQUIPMENT IAS 16 - Coggle Diagram
PROPERTY, PLANT & EQUIPMENT IAS 16
DEFINITION
land, no purpose, IAS 40 investment property, capital appreciation
peace of land, with intention to use in 3 years, construct building there, while waiting 3 yrs, fun fair want to rent, rental collect, the land treat as IAS 16 PPE
look into intention and action, committed construct building in 3 yrs, expect to use it than 1 yr
rent to others internally, below market rate, usage of IAS 16 only occur in the future
-
INITIAL MEASUREMENT
rule
measure at total cost an entity need to incure in order to bring the assets to its present location, condition and ready for intended use
levy, cost installation, all necessary cost to have it in working condition
generally look into purchase price, directly attributable cost - asset require you to dismantling i.e. construction machine on the ocean, end contract must dismantling, it must be capitalised
part you need to incur to the assets + obligation to , discount to PV
-
-
DERECOGNITION
revaluation surplus, reclassify to retained earning, relate to conceptual framework PNL vs OCI
i.e. land 5million carrying amount, hand to 3rd party. in return for a machine, 6million carrying amount, fair value 8 million -- 3 millon as gain on diposal in PNL