IAS 16 | Property Plant and Equipment | IFRS | International Financial Reporting Standards
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- čas přidán 15. 06. 2019
- In this video, I discuss IAS 16. The objective of IAS 16 is to prescribe the accounting treatment for property, plant, and equipment. IAS 16 establishes principles for recognising property, plant and equipment as assets, measuring their carrying amounts, and measuring the depreciation charges and impairment losses to be recognised in relation to them.
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This is a short executive summary of IAS 16 Property, Plant and Equipment
IAS 16, Property, Plant, and Equipment, provides the primary guidance in accounting for the acquisition and use of property, plant, and equipment (PPE) under IFRS. Although formally adopted in 1993, many of this statement’s central provisions have been part of international standards since the 1970s. IAS 16 covers the following aspects of accounting for fixed assets:
1. Recognition of initial costs of property, plant, and equipment.
2. Recognition of subsequent costs.
3. Measurement at initial recognition.
4. Measurement after initial recognition.
5. Depreciation.
6. Derecognition (retirements and disposals).
Thank you so much Professor Fahad,you are my best accounting mentor that has made me enjoy accounting like never before
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No words to show you respect and thanks to you sir , you have done exceptional work , thanks alot sir🌸
It's my pleasure. Please take look at my international accounting courses: farhatlectures.pathwright.com/library/international-accounting-ifrs/about/
maybe the best video out there..one question..at 26:11 where is the depreciation effect? Thanks
Thank you so much! The examples make everything better
You're very welcome!
thanks sir, it really helped explain ppe especially during this lockdown
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Hiya thank you very much for such hard work and phenominal expalantion.
One question: can you please give an example of this ''The depreciation charge for each period shall be recognized in profit or loss unless it is included in the carrying amount of another asset. [IAS 16.48.]''? when do we include the dep in carrying amount of another asset?
Excellent sir
So brilliantly explained!
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Were do we allocate street and sidewalk installation
quick question, assuming a company refurbished an office building it owns for $240K (expense include; renovation to walls and floor, instalation of new lighting and etc). Would the $240K be expended or capitalized? If capitalized, under what criteria would be used?
Everytime before i write i watch this video, i no longer study ppe
Can’t thank you enough prof!
Most welcome.
Hi Sir,
Can we consider the LC Charges to import an equipment as a costs needed for asset to perform as intended ?
yes, but as a cost of bringing the asset in the location.
where can i find notes and materials sir?
you explain so well but, I was expecting you to also cover deferred tax consequences
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Thank you so much.. Can I please get the slides or pdf of notes?
How property, plants and equipments are balanced on the liability side of the balance sheet?Let's say If a company buys an asset worth $1000 , it will show that under assets, but on the liability side which item will be increased by $1000 so that balance sheet will balance? Will it increase reserves & surplus by $1000 to balance on the liability side?
Great lesson
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Thank you for useful lesson ،can you translate to arabic please
Nice explanation
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are there any different between "scrap" "salvage" and "residual" value definition? or it only merely difference word use by different country?
no, they are all the same, like how you would state that cost is the same as price. You can use whatever word you want as long as it is not misleading
@@alegremohammadallem6993 thank you for your feedback
Sir
If I purchase a cars for my company is the licences fees capatilize it or period expense
This licences in nesscessry to run cars
So first time can capatilize it then consider it period expense
yes they are captalised bro since they are part of the intial costs to put the asset to use
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❤❤❤❤❤
You Video poster Say AIS 2.I think its mistakenly printed.
74321*(1,1)^20=499995 checked with 5 cent error but ok for me
How to determine residual value and usegul life at a time of valuation?
You estimate.
Should preliminary and general cost be Capitalized under IAS 16?
Can we get the exam's freely?
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