IAS 16 - PPE

Página 1

PPE Initial recognition :

R - RESOURCE - When it’s probable that we will get future economic benefits

C - CONTROL - When we control the asset

C - COST - When the asset’s cost can be measured reliably

COST OF THE ASSET :

1. site preparation, delivery and handling, installation, related professional fees for architects and engineers

2. Dismantling costs - PRESENT VALUE

Dr Asset

Cr Liability

Discount the costs and unwind the cost (using discount rate) every year

PV x Discount rate

Dr interest (with unwinding of discount)

Cr liability

3. Borrowing costs - Loan taken to construct an asset over time