Accountancy/Depreciation/Property, plant, and equipment
IFRS system definition:
According to paragraph 6 of IAS 16: Prpety plant and equipment are tangible items that:
- a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and
- b) are expected to be used during more than one period.
- Associate cost
- paragraph 17
- Inclusion:
- Exclusion:
Allocation the cost based on fair values, for example. A acquire furniture and buildings for 15000 and 90000, while the total cost are 90000 in actual. Allocate to each asset
- furniture 15000/105000*90000
- land 90000/105000*90000
The cost model
[edit | edit source]tge depreciation methods : straight-line