IAS 16 PPE

Establishing for recognising PPE as assets, measuring their carrying amount and measuring
the depreciation changes and impairments losses to be recognised in relation to them

PPE are tangible items that :

- Are held for use in the production of goods or services for rental to others or for
administrative purposes
- Are expected to be used during more than one period.

an item of PPE is recognised as an asset, if :

- It is probable that feb associated with the item will flow to the entity
- The cost of the item can be measured reliably

Measured at cost
- Purchase price and purchase related costs
- Any costs attributable to bringing the asset to the location and condition necessary for
it to be capable of operating in the manner intended by management
- Costs of dismantling and removing the item and restarting the site on which it is
located unless those costs related to inventories produced during that period

After recognition- choose either cost or revaluation model for the entire class of PPE.

Cost model= cost less accumulated depreciation and any impairment losses.

Revaluation
= fv- accumulated depreciation and subsequent accumulated impairment loses
- The increases/decreases recognised in OCI and accumulated in equity

Depreciation- systematic allocation over useful life, recognised in profit and loss unless its
included in the carrying amount of another asset.