PAS 16 - IAS 16 applies to the accounting for property...

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P A S 16 P R O P E R T Y P L A N T & E Q U I P M E N T SCOPE IAS 16 applies to the accounting for property, plant and equipment, except where another standard requires or permits differing accounting treatments, for example: assets classified as held for sale in accordance with IFRS 5 biological assets related to agricultural activity accounted for under IAS 41 exploration and evaluation assets recognized in accordance with IFRS 6 RECOGNITION Items of property, plant, and equipment should be recognized as assets when it is probable that: it is probable that the future economic benefits associated with the asset will flow to the entity, and the cost of the asset can be measured reliably. This recognition principle is applied to all property, plant, and equipment costs at the time they are incurred. These costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. INITIAL MEASUREMENT An item of property, plant and equipment should initially be recorded at cost . Cost includes all costs necessary to bring the asset to working condition for its intended use.
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  • Summer '15
  • Mr.Leyson
  • Depreciation, Generally Accepted Accounting Principles, future economic benefits

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