MEASUREMENT BASES and other important reminders

Borrowing Government Wasting Assets Investment Biological Assets Noncurrent Intangibles

Costs Grant Property assets held for
sale
Initial Measurement Fair value Cost Cost plus any Confirm: lower of CA Cost
Income or Liability transaction costs and FVCTS
(DACs)
Cost model and
revaluation model

Subsequent Cost Model or Revaluation
Measurement Model
Disposal
Other Reminders Applicable only Receivable as Composition of cost:
for qualifying compensation for - acquisition cost (wasting
assets. losses – income na assets include a land area –
agad treated as residual value to
get the depletable amount)
GG do not include - exploration cost (before
government technical feasibility and
assistance commercial viability ; either
successful effort or full cost
method
- development cost (after
technical feasibility and
commercial viability)
- estimated restoration cost
Depletion
- If may shut
down, use SL
method
- Inventoriable
(treated as
direct
materials)
Rules in depreciating
mining properties:
- SHORTER
between UL of
the mining
property and
the UL of the
wasting assets.
Mining equipment
- can be used in another
mining site – SL method
- walang use after all
resources are removed – use
output method or SL
method. Depends kung ano
ang shorter between UL and
Fair value model FVCTS – if may Cost model or
or cost model FVCTS or Cost less Acc Dep less IL increase in FVCTS revaluation model (if
(with previously may active martket)
Any change in FV recognized IL), the gain
is presented in P/L is limited only to the IL
Net Proceeds (SP –
cost to sell) – CA
of the asset =
gain/loss (P/L)
Cost (basket Cost to sell excludes transportation, finance cost, and income taxes Revluation surplus – Impairment of Patent:
method) (roque HO) walang piecemeal - compare CV with its
- Hindi given ang realization recoverable value
FV ng isa - use Gain = includes harvest and birth (higher between value
residual approach Reval: in use and FVCTS)
(allocate muna sa Bearer plants with dual purpose – BA Change in FV –
may FV) presented in OCI?? Trademark:
From valix: According to roque
Subsequent costs If mining equipment is movable and can be used for future extractvie HO, if may binigay na
are also project, use SL method. definite life pero
capitalizable like sinabing “trademark
sa PPE will be renewed in the
future indefinitely”,
Disposal: treat as asset with
If cost model – indefinite life.
dapat updated
muna ang CA Customer list – if silent
as to whether acquired
If fair value model or internally generated,
– use FV at the last assume na acquired. So
reporting date subject to amortization.
kahit given ang FV
at the disposal date Internally generate IA
–
Transfers: - research phase –
Cost model – no expense lahat
gain or loss
- development phase –
FV model may criteria to be met
- OOP to IP – para macapitalize
difference is reval
surplus (if walang Amortization of IA
intention to with finite useful lives:
reclassify from FV - SHORTER between
to cost, no the period of its
piecemeal legal/contractual rights
realization. If and the period over
meron, may which the entity
piecemeal) expects to use the asset
- Amortization ceases
- Inventory to IP – at the EARLIER
 mining period. sa P/L lang between:
▪ The asset in classified
*if walang nagbago sa - under as held for sale
estimates, wala ring change construction – FV ▪ Derecognition of the
sa depletion rate per unit. – CA (of the CIP) asset
shall go to P/L
Shutdown: Indefinite to finite
- compute depreciation - amortize based on
using UL (based on remaining life
remaining life and CV)
- if nagresume – return to
output method (using CA
and remaining estimate)

Government grant:

QS: if silent as to whether deferref income approach or deduction from the cost of the asset, ano gagamitin?