Flashcards
IAS 16 Definitions
Cards in this deck (14)
- 1IAS 16Property, Plant & Equipment
- 2Tangible ItemsHeld for use in production or supply of goods and services, for rental to others or admin purposes & expected to be used during more than 1 period
- 3DepreciationSystematic allocation of depreciable amount over an assets useful life
- 4Depreciable AmountCost (or amount substituted for cost) less residual value
- 5CostAmount of cash or cash equivalents paid and fair value of other consideration given to acquire an asset at the time of its acquisition or construction
- 6Fair ValueAmount for which an asset could be exchanged between knowledgeable, willing parties in an arms length transaction
- 7Residual ValueEstimate of amount that would currently be obtained from disposal of the asset after deduction estimated disposal costs, assuming the asset to be of the age and condition expected at the end of its useful life
- 8Useful LifeEither
-Period of time over which an asset is expected to be used; or
-Number of production or similar units expected to be obtained - 9Carrying AmountAt which an asset is recognized after deduction any accumulated depreciation and any accumulated impairment losses
- 10Impairment LossAmount by which the carrying amount exceed its recoverable amount
- 11Impairment LossAmount by which the carrying amount exceeds its recoverable amount
- 12Recoverable AmountHigher of asset's net selling price and its value in use
- 13Value In UsePresent Value of the future cash flows obtainable as a result of an assets continued use; including those from its ultimate disposal
- 14Entity Specific ValuePresent Value of cashflows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Used when the asset has been made specifically for the business. Other businesses would have no use for it.