I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART D: RECORDING TRANSACTIONS AND EVENTS 

 

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3

   IAS 16 Property, Plant and Equipment 

The accounting treatment of tangible non-current assets is covered by IAS 16 Property, Plant and 

Equipment. 

3.1 Definitions 

IAS 16 Property, Plant and Equipment is the International Financial Reporting Standard that should be 

followed when accounting for tangible non-current assets. The key concepts that we will cover in the 

next few sections come from IAS 16 and are very important. 

IAS 16 gives a large number of definitions that you need to be aware of: 

 

'

Property, Plant and Equipment

 are tangible items that: 

– 

are held for use in the production or supply of goods or services, for rental to  others, or for 

administrative purposes; and 

– 

are expected to be used during more than one period.' 

 

'