The Nhyira Premium Perspectives24 Mar 2019

IAS 16 Property, Plants & Equipment

MODULE 3 – PROPERTY, PLANT & EQUIPMENT [IAS 16] - Part 1 Module objectives: After going through this module, you will be able to: 1. Understand the recognition criteria for Non – Current Assets 2. Understand the measurement basis 3. Prepare an Extract of financial statements for Non – Current Assets 4. Disclosure requirements of Non – Current Assets Subsequent measurement: After the asset has been recognized, the subsequent measurement of the asset has to be considered. There are two methods to be considered: Cost model: This is where the asset is valued using the carrying value of the asset. Thus Value of asset = Cost- Accumulated depreciation Revaluation model: This where the asset is valued based on the fair market value of the asset. Thus Value of asset = Fair value - Accumulated depreciation. You can Watch the Lecture Video here https://youtu.be/Mik6AiiXgXw

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