IAS 16 Property, Plant and Equipment

Question 1

Initial measurement, reval, deprcn,

Answer 1

• Cost directly attributable to bringing the asset to working condition and must capitalise finance costs.
• May be revalued: take reval to OCI and continue to depreciate assets as normal.
• Commence depreciation when asset is available for use
• May not be possible to charge depreciation if asset has very long life. therefore, must maintain asset to good standard.