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PPE (AS 16)
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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
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Author
yhliuaa
ID
324296
Card Set
PPE (AS 16)
Description
PPE (AS 16)
Updated
2016-10-09T15:28:46Z
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