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Ias 16

Ias !6
by

Muhammad Haris

on 20 November 2015

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Transcript of Ias 16

Property,Plant and Equipment
IAS-16
Members
Scope
History
Based On the Other Standards
Objectives Prescribed
Elements Of Recognition
Disadvantages of Historical Accounting
Amal Shakeel
Maham Masood
Amar Arshad
Rabiya Naeem
Muhammad Haris
Danish
This standard shall be applied in accounting for property, plant and equipment.
This standard does not covers:-
Anything Considered for sale
Biological assets or else related to the agriculture
Mineral rights and reserves
U.S and International standards differ in their approaches to account plant assets. This Standard was originally issued in 1982 and has been amended three times. The current version was amended in 2003
August 1980(Exposure Draft E18 Accounting for Property, Plant and Equipment in the Context of the Historical Cost System)
March 1982(IAS 16 Accounting for Property, Plant and Equipment)
1 January 1983(Effective date of IAS 16 (1982)
May 1992Exposure Draft E43 Property, Plant and Equipment)
December 1993(IAS 16 Accounting for Property, Plant and Equipment (revised as part of the 'Comparability of Financial Statements' project)
1 January 1995(Effective date of IAS 16 (1993) Property, Plant and Equipment)
18 December 2003(Revised version of IAS 16 issued by the IASB)
"The accounting treatment for property,equpiment and plant."
As Ias 7 outlines recognition historical cost of plant property and equipment. And historical cost is recognized whem 2 criteria are met
Future Economic Benefits from Item
The cost of the item can be measured reliably
The elements of cost include
purchase price
costs directly attributable bringing the asset to the location
and the initial estimate of the costs of dismantling
removing the item and restoring the site on located
This method ignores the fact that the current market value of an asset may be higher or lower than historical cost makes it appear.
It even does not work better when the inflation factor is high.
The Standard's scope states that it "shall be applied in accounting for property, plant and equipment except when another Standard requires or permits a different accounting treatment
Where as IAS-16 also recognizes on historical cost.
Biological Assets And Mineral Reserves.
This standard give complete account on the plant,property and equipment. from reconginition of asset to the derecognition or disclosures.
But...!!!
IAS-16 does not covers any portion of asset which also amortize and should be maintain and recognized in the financial statements like biological asset or mineral resources.
QUESTION
& ANSWERS??
Some other Disclosures
restrictions on title
expenditures to construct property, plant, equipment during the period
contractual commitments to acquire property, plant, and equipment
the effective date of the revaluation
whether an independent valuer was involved
for each revalued class of property, the carrying amount that would have been recognised had the assets been carried under the cost model.
Full transcript