Property, plant and equipmentPage 2Typical coverage of US GAAP►Definition►Acquisition of PP&E:►General►Self-constructed assets►Interest costs during construction►Initial cost of natural resources►Valuation at acquisition:►Exchange of non-monetary assets►Lump-sum purchases►Deferred payment contracts►Purchase paid for using company stock►Costs incurred subsequent to acquisition►Periodic valuation:►Carrying value►Impairment
Property, plant and equipmentPage 3Typical coverage of US GAAP►Cost allocation issues:►Depreciation►Definition►Useful life►Depreciable base►Depreciation method►Depletion►Disposition:►Sale►Involuntary conversion►Fully depreciated fixed assets►Disclosure requirements
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Property, plant and equipmentPage 4Executive summary►IFRS permits periodic revaluation of an entire class of fixed assets to fair value. US GAAP does not allow revaluation.►IFRS has a one-step approach for determining impairment of fixed assets while US GAAP has a two-step approach.►IFRS allows reversal of impairment losses on fixed assets, while this is prohibited using US GAAP.►IFRS requires depreciation of components of an asset when the components have different periods of benefit. Component depreciation is permissible using US GAAP but is not a common practice.