By using our website, you agree to the use of our cookies.
By using our website, you agree to the use of our cookies.

IAS 16 Property, Plant and Equipment

International Accounting Standard 16

Overview of IAS 16

  • Issued: in 1982; re-issued in 1993 and 2003, followed by amendments
  • Effective date: 1 January 2005
  • What it does:
    • It prescribes the accounting treatment for property, plant and equipment;
    • It sets the initial recognition criteria related to an item of property, plant and equipment and deals with subsequent costs;
    • It prescribes the rules for initial measurement of property, plant and equipment (components of cost)
    • In relation to subsequent measurement, it permits two models:
      1. Cost model: The asset is carried at its cost less accumulated depreciation and impairment loss.
      2. Revaluation model: The asset is carried at a revalued amount calculated as fair value at the date of revaluation less subsequent accumulated depreciation and impairment loss.

Articles about IAS 16

Questions and Answers

Other Resources

  • IFRS Kit - learn IFRS in 130+ videos, 140+ excel case studies, quizzes, certificates
  • IFRS Refresher Modules - interactive text-based training in individual IFRS with the feedback from real tutors
  • IFRS Enabler - systematical interactive IFRS training for corporate teams
  • my Helpline - get answers to your specific IFRS and other questions from more than 50 top consultants + fully searchable IFRS database as a bonus

CLICK HERE to see a complete catalogue of our courses.