International Financial Reporting Standards (ifrs)

Does not depreciate since its usefulness and revenue producing ability generally remain intact, or increase.

• Does not depreciate since its usefulness and revenue producing ability generally remain intact, or increase.

• Land

• LEARNING OBJECTIVES

• At the end of this chapter, students should be able to:
• identify the characteristics and types of PPE,
• determine cost of PPE according to its type,
• calculate the depreciation cost using four methods, and
• describe the accounting treatments for three alternatives of PPE disposal.

Four major types of PPE:

• land.
• building, such as office outlet, store, factory, plant and others.
• land improvement including parking lots, driveways, landscaping and fences.
• machine and equipment, such as office furniture, factory machinery, cash-register machine and vehicles like lorry, delivery truck and others.