IAS 16 – Property, plant & equipment • Initial measurement – cost directly attributable to bringing the asset into working condition; now compulsory to capitalize finance costs. • Capitalize subsequent expenditure which enhances economic benefits of the asset. • May be revalued – take revaluation to revaluation reserve; continue to depreciate asset over remaining expected useful life. Disclose name, date and qualifications of valuer. • Commence depreciation when asset available for use and charge to reflect economic benefits consumed during the period • May be possible not to charge depreciation if it is immaterial due to very long expected useful life of asset and/or high residual values. If this is the case, asset to be maintained to a high standard and is unlikely to suffer from economic or technical obsolescence.
Posted on: Tue, 05 Nov 2013 18:28:41 +0000
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