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  • Depre: Transportation Pre-Production 20000 Service Maintenance 132200) Early

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    Saidatul Diha
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    The document summarizes the accounting treatment for various costs related to purchasing and constructing property, plant, and equipment based on IAS 16. It discusses costs like depreciation, maintenance, labor costs, borrowing costs, consultants' fees, and restoration costs. It provides examples of how to calculate amounts to capitalize to the asset versus expenses to the income statement based on IAS 16 guidelines.

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    IAS 16 note

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    The document summarizes the accounting treatment for various costs related to purchasing and constructing property, plant, and equipment based on IAS 16. It discusses costs like depreciation, maintenance, labor costs, borrowing costs, consultants' fees, and restoration costs. It provides examples of how to calculate amounts to capitalize to the asset versus expenses to the income statement based on IAS 16 guidelines.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    9 views1 page

    Depre: Transportation Pre-Production 20000 Service Maintenance 132200) Early

    Uploaded by

    Saidatul Diha
    The document summarizes the accounting treatment for various costs related to purchasing and constructing property, plant, and equipment based on IAS 16. It discusses costs like depreciation, maintenance, labor costs, borrowing costs, consultants' fees, and restoration costs. It provides examples of how to calculate amounts to capitalize to the asset versus expenses to the income statement based on IAS 16 guidelines.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    Tutorial IAS 16 Basic list price [ WI ] 460800 Depreciation :

    Transportation 4 handling 5000


    Question 1 Estimated Pre-production testing 20000 528800 ÷ 4
    service 1 maintenance nil = 132200
    -
    Cost 9 depre [ expense in PIL / maintain value ] →
    Electrical cable installation 30000

    * cash discount for set up cost 5500


    early settlement Labour cost 7500
    = income in PIL Initial cost -

    52880T
    Wi : →
    C. 100J .
    -
    4J ] . ✗ 480000
    = 460800

    SOFP [ extract] income statement POL


    NCA :
    Expense :

    PPE [ equipment ] 528800 Depreciation 132200

    Cacc depreciation ) service 4 maintenance 40000


    13220£
    -

    172-200
    Net PPE 3966-00
    Income :

    Cash discount 24000

    [ 5T ✗ 480000
    .
    ]

    Tutorial IAS 16 Purchase of land 10 000

    Cost of dismantling 500 Total initial cost


    Question 4 Purchase of material 6000 = 20729

    Employment cost [ WI ] 1600 =☒


    -
    Initial cost Production overheads [ W2 ] 1000
    General Overhead [ ✗ DAC to PPE ] nil

    * borrowing cost Architects consultant fee 400

    Period to capitalise cost of relocating staff [ ✗ DAC ] nil

    Formal opening of factory [ ✗ DAC ] nil

    * future rake to interest on loan [ W3 ] 800


    present value cost of restoration CWU ] 429
    Wi : wz :
    * cost do not include 1800 ÷ 9 = 200 1200 -
    200

    in DAC 200×8 = 1600 =


    1000
    .

    = =

    W3 :

    12000 ✗ LOT .

    ✗ 8/12
    = 800 -
    construction from 1/10/2016 -
    31/5/2017

    Wu :

    FV
    →
    ( Iti )
    +:÷÷
    = 429096

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