International Financial Reporting Standards (IFRS)

IFRS for Small and Medium-sized Entities (SMEs)
Section 17: Property, Plant and Equipment

1. At initial recognition
--> property, plant and equipment are recognised
--> at cost

2. After initial recognition
--> property, plant and equipment are recognised
--> at cost less (A) and (B)
--> (A) accumulated depreciation
--> (B) accumulated impairment losses

3. Depreciation methods include:
(1) straight-line method
(2) diminishing balance method
(3) usage-based depreciation method

4. Apply the rules of SME 27
--> for the impairment of property, plant and equipment

5. When is an asset in property, plant and equipment derecognised?
(1) when the asset is disposed of
(2) when the asset is not expected to provide (C) in the future
--> (C) economic benefits