IAS 16 - Property, Plant and Equipment (IFRS)

Question 1

Property, Plant and Equipment (IFRS)

Answer 1

Initial recognition if:
* The future economic benefits associated with the asset will flow to the entity, and
* The cost of the asset can be reliably measured.
Initial measure- recorded at cost.
Subsequent measurement
* Carried at cost less accumulated depreciation, and impairment losses, OR
* Carried at revalued amount, i.e. FV, less subsequent depreciation if FV can be reliably measured
o An increase in value is credited to OCI, unless it is a reversal of a revaluation decrease previously recognized as an expense
Significant components are required to be depreciated over their estimated useful life.

Reference: IAS 16