This research, theory and practice mini dissertation provides information about the history of accounting as well as information about the international account standard 16 property, plant & equipment. It also includes a brief overview of IAS's history as well as the international critique, both po...
Submitted in partial fulfilment of the requirements for the National Diploma:
Financial Accounting
(Qualification ID)
Date
DECLARATION BY STUDENT:
I declare that this mini-dissertation submitted by me, is my own work, that I have referenced
all the sources that I have used and that no part was previously submitted at any tertiary
institution.
Signature: ………………………. Date: ………………………
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,Acknowledgements
I would like to acknowledge the following people for always been there for me no matter
what and pushing me to finish this mini-dissertation when I didn’t think I could do it.
• My Mom, for always been there and pushing me to get the work done and for always
been there to help when I needed it.
• My dad, who always supported me, no matter what. I hope I make you proud.
• My gran, who always has faith in me and has been my champion through everything.
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,Table of Contents
Property, Plant and Equipment (IAS 16) Title page…………………………………………...i
Acknowledgements………………………………………………………………..…………..ii
Table of Contents...…………………………………………………………………………...iii
Chapter 1: Introduction……………………………………………………………………...1
1.1 Background of International Standards…………………..…………………………….1
1.1.1 History of Accounting………………………………………………………… 1
1.1.2 Accounting Standards: GAAP and IFRS……………………………………….3
1.1.3 The IAS…………………………………………………………………………7
1.2 Aims and Objectives of the study……………………………………………………...8
Chapter 2: Literature Review……………………………………………………………….9
2.1 Introduction…………………………………………………………………………….9
2.2 Overview……………………………………………………………………………….9
2.2.1 International Accounting Standards (IAS)……………………………………….9
2.2.2 IAS 16 Property, Plant & Equipment…………………………………………….9
2.3 Definitions…………………………………………………………………………….10
2.4 Recognition of IAS 16………………………………………………………………...11
2.4.1 Recognition – Overview…………………………………………………………11
2.4.2 Initial Recognition……………………………………………………………….12
2.5 Measurement of PPE items…………………………………………………………...13
2.5.1 Initial Measurement……………………………………………………………...13
2.5.2 Cost………………………………………………………………………………13
2.5.3 Fair Value………………………………………………………………………..15
2.5.4 Measurement after recognition…………………………………………………..15
2.6 Depreciation of PPE items……………………………………………………………17
2.7 Derecognition…………………………………………………………………………19
2.8 Disclosures……………………………………………………………………………20
2.8.1 Information about each class of PPE……………………………………………20
2.8.2 Additional Disclosures…………………………………………………………..21
2.8.3 Revalued PPE……………………………………………………………………21
Chapter 3: Methodology……………………………………………………………………22
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, 3.1 Introduction…………………………………………………………………………...22
3.2 Research Design………………………………………………………………………22
3.2.1 Qualitative Research……………………………………………………………..22
3.2.2 Quantitative Research……………………………………………………………22
3.2.3 Mixed Methods Research………………………………………………………..22
3.3 Research Process……………………………………………………………………...23
3.4 Data Collection………………………………………………………………………..23
3.4.1 Primary and Secondary Data…………………………………………………….23
3.5 Reliability and Validity……………………………………………………………….23
3.5.1 Reliability………………………………………………………………………..23
3.5.2 Validity…………………………………………………………………………..23
3.6 Summary……………………………………………………………………………...24
Chapter 4: Data Analysis and Discussion…………………………………………………25
4.1 Introduction…………………………………………………………………………...25
4.2 Asset Class and Useful Life…………………………………………………………..25
4.2.1 Buildings………………………………………………………………………...25
4.2.2 Vehicles………………………………………………………………………….26
4.2.3 Computers……………………………………………………………………….27
4.2.4 Furniture…………………………………………………………………………27
4.2.5 Equipment……………………………………………………………………….28
4.2.6 Air conditioners………………………………………………………………….28
4.2.7 Lifts……………………………………………………………………………...29
4.3 Discussion…………………………………………………………………………….29
4.4 Recording Assets……………………………………………………………………...30
4.5 Acquisition……………………………………………………………………………31
4.6 Residual Value………………………………………………………………………..31
4.7 Summary……………………………………………………………………………...32
Chapter 5: Conclusion……………………………………………………………………...33
5.1 Overview of the Study………………………………………………………………...33
5.2 Achievements of the Objectives………………………………………………………33
5.2.1 Objective 1: A Brief Overview of the Standard…………………………………33
5.2.2 Objective 2: Positive International Critique with Respect to IAS 16……………33
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