Summary
Summary PPE IAS16
- Course
- Accounting 200
- Institution
- University Of Johannesburg (UJ)
PPE summary including depreciation and revaluation calculations
[Show more]
Content preview
DefinitionTangible asset that is: Propert
Held for production or supply of goods and
services, rental to others or admin purposes
Expected to be used for more than one y, Plant
reporting period
Recognition
and
Recognise when the asset definition is met and control transfers
Specific assets require certain things to occur for control to transfer such as a
deed transfer for land and buildings or when a vehicle is registered in the
entity’s name
Measurement at initial recognition
Measured at cost price less any refundable taxes and costs not included in
cost price as per IAS16
Cost includes the following:
Purchase price
Import duties
Brokerage fees
Legal expenses
Costs directly related to bring asset to location and state fit for use as
deemed by management
*Any revenue from test products or test services reduces any testing
costs*
PV of costs to dismantle and rehabilitate environment or site forms part
of cost
Subsequent Measurement
Depreciation
Depreciation begins from the date the asset is ready for use and ceases when
the asset is
Fully written off
Derecognised
Disposed
Transferred to Non-Current Assets held for sale (IFRS 5)
Depreciable amount = Cost – Residual Value
*Revisions of residual value and useful life are applicable from the beginning
of the year even if taken at the end*
Carrying Amt = Cost – Acc Dep – Acc Impairment
Depreciation methods
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller sjg2797. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now