Summary
Summary PPE IAS 16
- Course
- Institution
this document is a complete and concise summary on how to do complex PPE questions. It contains many examples with step by step guidance on how to do the calculations
[Show more]
Seller
Follow
Talizamazoue
Reviews received
Content preview
IAS 16 PPE, Definition & recognition criteria
- Definition:
o Tangible items
o Held for use in:
▪ Production or supply of goods or services
▪ Rental to others or
▪ Administrative purposes
o AND expected to be used for more than one period
- Recognition criteria
o Probable that future economic benefits associate with the item will flow to the entity
o Cost of the item can be measured reliably
Methods of acquisition
1) Separate acquisition
2) Exchange transaction
SEPARATE ACQUISITION IFRS 3 – business EXCHANGE TRANSACTION
combination
AT COST: ➔ Recognized at the Fair 1) Fair value of both available
➔ Purchase price ( AFTER deducting value Cost price of asset RECEIVED =
trade discounts / rebates) ➔ Fair value = initial cost fair value of asset given up
➔ Import duties & other taxes (Non- price UNLESS fair value of new asset is
recoverable) more evident
➔ Any costs directly attributable to (fair value of old)
bring asset to location and
condition necessary for intended 2) No fair value available
use Cost price of asset RECEIVED =
➔ Initial estimate of cost of carrying amount of asset given
dismantling and removing asset up
and restoring site (carrying amount of old)
PPE must be measured at PV
3) No commercial substance
Cost price pf asset RECEIVED =
carrying amount of asset given
up
(carrying amount of old)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Talizamazoue. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.75. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
50843 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now