Ias 16 -- property, plant and equipment deloitte

1. What can be Capitalised under IAS 16?
2. How does IAS 16 defines property, plant, and equipment?
3. What is included in property, plant, and equipment?
4. Which of the following is a difference between IFRS and ASPE for the accounting of property, plant, and equipment?
5. At which point should an item of property, plant and equipment be recognized under IAS 16?
6. What is depreciation according to IAS 16?
7. How do you calculate property, plant and equipment?
8. What should be the basis for choosing depreciation methods for fixed assets under IAS 16 property, plant and equipment )?
9. What are 3 types of assets?
10. What is the total amount of property, plant, and equipment?
11. What is NWC?
12. How are property, plant and equipment measured Aspe?
13. Which of the following depreciation methods is prohibited by PAS 16 property, plant and equipment?
14. Which of the following are characteristics of plant property and equipment?

What can be Capitalised under IAS 16?

IAS 16 says that we can capitalize any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management (IAS 16.16(b)).

How does IAS 16 defines property, plant, and equipment?

Property, plant and equipment are tangible items that: are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and. are expected to be used during more than one period.

What is included in property, plant, and equipment?

Property, plant, and equipment (PP&E) are a company's physical or tangible long-term assets that typically have a life of more than one year. Examples of PP&E include buildings, machinery, land, office equipment, furniture, and vehicles. Companies list their net PP&E on their financial statements.

Which of the following is a difference between IFRS and ASPE for the accounting of property, plant, and equipment?

Under ASPE, the initial cost of property, plant and equipment only includes legal obligations (Section 3110). IFRS requires legal obligations to be included in the initial cost. ... ASPE does not provide guidance on what costs are specifically excluded from the cost of the asset.

At which point should an item of property, plant and equipment be recognized under IAS 16?

IAS 16 states that the cost of an item of property, plant and equipment shall be recognized as an asset if, and only if: it is probable that future economic benefits associated with the item will flow to the entity; and. the cost of the item can be measured reliably.

What is depreciation according to IAS 16?

IAS 16 defines depreciation as 'the systematic allocation of the depreciable amount of an asset over its useful life'. The 'depreciable amount' is the cost of an asset or other amount substituted for cost (for example the fair value of an asset following a revaluation), less its residual value.

How do you calculate property, plant and equipment?

To calculate PP&E, add the amount of gross property, plant, and equipment, listed on the balance sheet, to capital expenditures. Next, subtract accumulated depreciation. The result is the overall value of the PP&E. It's often referred to as the company's book value.

What should be the basis for choosing depreciation methods for fixed assets under IAS 16 property, plant and equipment )?

The inventory write-down should be reversed to bring it in line with the new net realizable value. What should be the basis for choosing depreciation methods for fixed assets under IAS 16 (Property, Plant, and Equipment)? ... IAS 16 allows for upward revaluation of the asset based on fair value.

What are 3 types of assets?

Common types of assets include current, non-current, physical, intangible, operating, and non-operating. Correctly identifying and classifying the types of assets is critical to the survival of a company, specifically its solvency and associated risks.

What is the total amount of property, plant, and equipment?

To calculate net PP&E, you take gross PP&E, add related capital expenses and subtract depreciation. Gross PP&E is the total cost you paid for all the assets at the start of the balance-sheet period. If your buildings, equipment and vehicles cost you a total of $1.2 million, that's your starting point.

What is NWC?

Working capital, also known as net working capital (NWC), is the difference between a company's current assets—such as cash, accounts receivable/customers' unpaid bills, and inventories of raw materials and finished goods—and its current liabilities, such as accounts payable and debts.

How are property, plant and equipment measured Aspe?

Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated so that its depreciable amount is allocated on a systematic basis over its useful life.

Which of the following depreciation methods is prohibited by PAS 16 property, plant and equipment?

The amended IAS 16 prohibits entities from using a revenue-based depreciation method for items of property, plant and equipment. The amended IAS 38 introduces a rebuttable presumption that revenue is not an appropriate basis for amortisation of an intangible asset.

Which of the following are characteristics of plant property and equipment?

The major characteristics of property, plant, and equipment are: (1) They are acquired for use in operations and not for resale. (2) They are long-term in nature and usually subject to depreciation. and (3) They possess physical substance.