IAS 16 PPE (NCA)

Question 1

PPE definition

Answer 1

tangible assets that
* are held for use in the production or supply of goods or services, rental to others, or for administrative purposes
* are expected to be used during more than one period

Question 2

recognition criteria

Answer 2

• it is probable that future economic benefits will flow to the entity
• the cost of the asset can be reliably measured

Question 3

what does measured at cost comprise?

Answer 3

• the purchase price
• cost that are directly attributable to bringing the asset to the location and condition necessary to operate
• the estimated cost of dismantling and removing the asset, including any site restoration costs.

Question 4

revaluation gain

Answer 4

held in OCI

Question 5

revaluation loss

Answer 5

p/l

Question 6

depreciation

Answer 6

cost less its residual value

Question 7

residual value

Answer 7

estimate of the net selling proceeds received if the asset was at the end of its useful life and disposed today