IFRS Notes

IAS 16: Keywords

Property, plant and equipment
Tangible assets with (1) and (2)
(1) for use to generate goods and services
(2) for use in more than one period

Depreciation
(1) systematic allocation of depreciable amount
(2) over its useful life

Depreciable amount = cost - residual value

Recoverable amount = higher of (1) and (2)
(1) asset's net selling price
(2) asset's value in use

Carrying amount = cost - (1) - (2)
(1) accumulated depreciation
(2) accumulated impairment losses

Fair value = exchange amount
(1) between parties
(1a) who are knowledgeable and willing
(2) in an arm's length transaction