International Financial Reporting Standards (ifrs)

IAS 16 Property, plant and equipment

• An impairment loss – the amount by which the carrying amount of an asset exceeds its recoverable amount;
• Property, plant and equipment – tangible items;
• Recoverable amount – the higher of an asset’s net selling price and its value in use;

• Unit 2

IAS 16 Property, plant and equipment

• Useful life:
• the period over which an asset is expected to be available for use by an entity; or
• the number of production or similar units expected to be obtained from the asset by an entity;

• Unit 2

Depreciation

• Depreciation should be provided in respect of all tangible non-current asset;
• Depreciation begins when an asset is available for use;

• Unit 2

Depreciation

• When the useful life of an asset is longer than 50 years, no depreciation need be charged;
• Useful life and residual values should be reviewed at least at the end of each reporting period;

• Unit 2