MODULE 3 – PROPERTY, PLANT & EQUIPMENT [IAS 16] – Part 1
Module objectives:
After going through this module, you will be able to:
1. Understand the recognition criteria for Non – Current Assets
2. Understand the measurement basis
3. Prepare an Extract of financial statements for Non – Current Assets
4. Disclosure requirements of Non – Current Assets
Subsequent measurement:
After the asset has been recognized, the subsequent measurement of the asset has to be considered. There are two methods to be considered:
Cost model: This is where the asset is valued using the carrying value of the asset. Thus Value of asset = Cost- Accumulated depreciation
Revaluation model: This where the asset is valued based on the fair market value of the asset. Thus Value of asset = Fair value – Accumulated depreciation.
You can Watch the Lecture Video here