IAS 16 Property, Plants & Equipment

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IAS 16 Property, Plants & Equipment
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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