IFRS - IAS 16 Property, Plant and Equipment

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• The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entity’s investment in its property, plant and equipment and the changes in such investment. The principal issues in accounting for property, plant and equipment are the recognition of the assets, the determination of their carrying amounts and the depreciation charges and impairment losses to be recognised in relation to them.

• measurement bases

• purchase price

• exploration and evaluation assets

• held for sale

• biological assets

• mineral rights and mineral reserves

• used in the production or supply of agricultural

• expected to bear produce for more than one period

• remote likelihood of being sold

• amount at which an asset is recognised after deducting any accumulated depreciation and accumulated impairment losses

• cash or cash equivalents paid or the fair value

• cost of an asset, or other amount substituted for cost, less its residual value

• systematic allocation of the depreciable amount of an asset over its useful life

• present value of the cash flows an entity expects

• price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

• amount by which the carrying amount of an asset exceeds its recoverable amount

• higher of an asset’s fair value less costs of disposal and its value in use

• estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal

• period over which an asset is expected to be available for use