PPE (AS 16)

Home

Get App

Create

definition
- held for use
- used for more than one year
initial recognition criteria
- future economic benefits will flow to the entity
- the cost can be measured reliably
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
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.
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
subsequent measurement - cost model

cost - AD- AImp
subsequent measurement - revaluation model

FV - AD- AImp
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
subsequent measurement - revaluation model - on date of revaluation - accu depre treatment
- restated proportionately with the gross CV
- eliminated against gross CV
subsequent measurement - revaluation model - Transfer of revaluation surplus to RE
- on depreciation (optional)
- on derecognition
subsequent measurement - depreciation - when begins

available for use
subsequent measurement - depreciation - when ceases
- classified as HFS
- on derecognition
subsequent measurement - depreciation - review depreciation

depre method, residual value and useful life reviewed annually
derecognition of PPE - when
- on disposal
- no future economic benefits expected from its use

Author

yhliuaa

324296

Card Set

PPE (AS 16)

Description

PPE (AS 16)

Updated

2016-10-09T15:28:46Z

Show Answers