IAS-16 Property Plant and equipment[pic 1]
Muhammad Hamid Javed Assignment no. 05
Advance Financial Accounting Programmed: MS (A&F) Session: 2018-2019 Department of Commerce
Submitted to: Sir Tauseef
IAS-16[pic 2]
Property Plant and equipment
1- What is PPT?
2- Recognition Criteria When to record in B/S?[pic 3]
3- Initial Recognition
4- Subsequent expenditure
What’s treatments & whether it is capitalized or expenditure?[pic 4]
5- Subsequent Recognition
After initial period how treatment has to be done in future time period?
1. Tangible Asset:[pic 5]
• Held for sale production
• Held for sale of good & services
• Rental purpose other than Property i.e. land & building
If we purchase or hire it on lease then it is fixed Asset *Any Asset can be owned or lease as well & vice-versa if it is given to other for using then it is called
Investment PPT
• Administrative Purpose
2. It should be use for more than 1 accounting period
3- Bearer Plant (Treatment under IAS-16): 1- Apple Tree • Living plant 3-sugarcane • Held for use in production of agriculture producer
• Expected to be bear produce in more than one accounting period
• There’s remote possibility that it’ll be sold as agricultural produce except for • scrap value
Unit of master:[pic 6]
It can be measure as individual item or aggregate it
IAS-16[pic 7]
Property Plant and equipment
Recognition Criteria
• Meet required defiant ion in market
Initial Recognition:→ Initial recognition
• Purchase cost+ import duty+ non-refundable purchase after deducting trade discount and rebate
• Any cost directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.