IAS 16 Property, Plant and Equipment replaced IAS 16 Accounting for Property, Plant and Equipment (issued in March 1982). IAS 16 that was issued in March 1982 also replaced some parts in IAS 4 Depreciation Accounting that was approved in November 1975.

IAS 16 establishes principles for recognising property, plant and equipment as assets, measuring their carrying amounts, and measuring the depreciation charges and impairment losses to be recognised in relation to them.

Land element is classified as an operating lease under IAS 17 because it has indefinite economic life. The land element should be recognised under IAS 17, as prepaid lease payments that are amortised over the lease term.

Mar 4, 2021 · Under paragraph 58 of IAS 16, land and buildings must be accounted for separately, even if jointly acquired. Lands have an unlimited useful life and, for this reason, should not be depreciated.

This is the final article in the series of three which consider the accounting for property, plant and equipment by applying IAS ® 16, Property, Plant and Equipment. This is a particularly important area of the Financial Reporting (FR) syllabus and is also important assumed knowledge for the Strategic Business Reporting (SBR) exam.

International Accounting Standard 16 Property, Plant and Equipment (IAS 16) is set out in paragraphs 1⁠–⁠83 and the Appendix. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB.

IAS 16 shall be applied in accounting for property, plant and equipment except for: • property, plant and equipment classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations; • biological assets related to agricultural activity – refer IAS 41 Agriculture;

IAS 16 International Accounting Standard 16 Property, Plant and Equipment Objective 1 The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entity’s investment in its property,

Jan 23, 2023 · Under IFRS, the land is not depreciated because it is considered an asset with an unlimited useful life. The reason for that is because they are considered long-term assets; they do not wear out or become obsolete over time.

Jan 1, 2005 · Free materials about IAS 16 Property, Plant and Equipment: summary video, articles, questions and answers and more.