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International Accounting Standards (IAS)
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| U.S. GAAP | IFRS, IAS | Accounting Topics |
International Accounting Standard (IAS) 16
Property, Plant and Equipment
| International Accounting Standard (IAS) 16 |
IAS 16
Property, Plant and Equipment IAS 16
first issued in March 1982 Revised in
December 2003 Recent amendment:
by IFRS 3 revised in January 2008 |
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Initial
recognition --> Property, plant and equipment are initially recognized at cost. |
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Measurement after recognition --> choose one of the following models: (1) cost model (2) revaluation model |
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Cost model --> carrying amount = cost - accumulated depreciation - accumulated impairment losses |
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Revaluation model --> carrying amount = revalued amount |
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Revalued
amount = fair value at the date of revaluation - subsequent accumulated depreciation - subsequent accumulated impairment losses |
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If
carrying amount is increased due to revaluation --> such increase is recognized in other comprehensive income --> such increase is accumulated in equity --> "revaluation surplus" |
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If
carrying amount is decreased due to revaluation --> such decrease reduces revaluation surplus (of that asset), first
After revaluation surplus (of that asset) is
reduced to zero--> such decrease is recognized in profit or loss |
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When an
asset is derecognised --> revaluation surplus (of that asset) --> is transferred to retained earnings |
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