PPE (AS 16)

  1. definition
    • held for use
    • used for more than one year
  2. initial recognition criteria
    • future economic benefits will flow to the entity
    • the cost can be measured reliably
  3. special treatment - exchange of assets - criteria and measurement
    • criteria:
    • exchange has economic substance
    • cost can be measured reliably
    • measurement:
    • P1: fair value of acquired item
    • P2: CV of asset given up
  4. commercial substance
    • configuration of CF of assets received differ from that of assets transferred
    • entity-specific value of the portion of the entity's operations affected by the transaction.
  5. initial recognition - measurement
    • 1. purchase price (non refundable tax)
    • 2. cost directly attributable to bringing to asset to usable location and condition
    • 3. removal cost
  6. subsequent measurement - cost model
    cost - AD- AImp
  7. subsequent measurement - revaluation model
    FV - AD- AImp
  8. subsequent measurement - revaluation model - frequency and revaluation gain/loss
    • frequency: made with sufficient regularity to ensure the CV does not differ materially from FV at year end (once every few years)
    • revaluation gain/loss:
    • reverse previous up/down first, then...
    • gain: OCI
    • loss: P&L
  9. subsequent measurement - revaluation model - on date of revaluation - accu depre treatment
    • restated proportionately with the gross CV
    • eliminated against gross CV
  10. subsequent measurement - revaluation model - Transfer of revaluation surplus to RE
    • on depreciation (optional)
    • on derecognition
  11. subsequent measurement - depreciation - when begins
    available for use
  12. subsequent measurement - depreciation - when ceases
    • classified as HFS
    • on derecognition
  13. subsequent measurement - depreciation - review depreciation
    depre method, residual value and useful life reviewed annually
  14. derecognition of PPE - when
    • on disposal
    • no future economic benefits expected from its use
Author
yhliuaa
ID
324296
Card Set
PPE (AS 16)
Description
PPE (AS 16)
Updated