UK IAS 16

Hi I would like to have a brief about what IAS 16 is as well as the goals and the objectives of the IAS 16?

IAS 16 Property, Plant and Equipment diagrams the bookkeeping treatment for most sorts of property, plant and hardware. Property, plant and hardware is at first measured at its expense, along these lines measured either utilizing an expense or revaluation show, and deteriorated so that its depreciable sum is designated on a deliberate premise over its valuable life.

IAS 16 was reissued in December 2003 and applies to yearly periods starting on or after 1 January 2005.

Goal of IAS 16

The goal of IAS 16 is to recommend the bookkeeping treatment for property, plant, and gear. The essential issues are the acknowledgment of benefits, the determination of their conveying sums, and the deterioration charges and disability misfortunes to be perceived in connection to them.

Scope

IAS 16 applies to the representing property, plant and gear, with the exception of where another gauges requires or allows contrasting bookkeeping medications, for instance:

resources named held available to be purchased as per IFRS 5 Non-current Assets Held available to be purchased and Discontinued Operations organic resources identified with agrarian action represented under IAS 41 Agriculture investigation and assessment resources perceived as per IFRS 6 Exploration for and Evaluation of Mineral Resources mineral rights and mineral saves, for example, oil, normal gas and comparable non-regenerative assets.

The standard applies to property, plant, and hardware used to create or keep up the last three classes of advantages.

The cost model in IAS 16 likewise applies to speculation property represented utilizing the cost model under IAS 40 Investment Property.

The standard applies to conveyor plants however it doesn't make a difference to the produce on carrier plants.

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Answered By StudyChaCha Member