IAS 16 Property, Plant and Equipment: Disclosures

 When disclosing Property, Plant, and Equipment three things should be kept in mind:

1. That PPE affects the Statement of Profit or Loss and Other Comprehensive Income through depreciation, impairment, and revaluation.

2. That PPE affects the Non-Current Assets portion of the Statement of Financial Position

3. That PPE should be disclosed in the notes in two parts:

           a. Accounting Policy and 

           b. PPE Note

IAS 16 prescribes the following disclosures:

1. accounting policies for PPE (depreciation policy, useful lives or depreciation rates, subsequent measurement policies) 

2. a reconciliation between the 'net carrying amount' at the beginning and end of the period separately disclosing each of the following:

- additions

- acquisitions through business combinations

- disposals

- assets transferred to non-current assets held for sale in accordance with IFRS 5

- depreciation

- other movements (e.g. currency translation differences)

Practical Example





Click here: https://www.youtube.com/watch?v=xEKDfwUN3Vo


Solution




If you want to know how the above figures were calculated please contact Sir Josef' on +263 78 637 6813.

Advert

Nitty-Gritty Private College offers the following courses:

1. Taxation

2. Financial Accounting and Financial Reporting

3. Audit

4. Management Accounting

5. Strategic Accounting

6. Financial Management

7. Corporate Finance

https://www.youtube.com/watch?v=xEKDfwUN3Vo

https://www.youtube.com/watch?v=Eqn1iEbZrp0

https://www.youtube.com/watch?v=NCzLr8B9AlM&t=1660s


Sir Josef'

Comments

Post a Comment

Popular posts from this blog

Taxation of Income from Trade and Investment Activities - General Framework - Zimbabwean Taxation

When calculating taxable income or tax liability of a corporation or of an individual on his trade or investment income, the following framework should be adopted. Important sections of the Income Tax Act when computing the tax liability are Section 8 (which discusses Gross Income), Section 15 (which discusses deduction), and section 16 (which discusses prohibited deductions).  The framework will also depend on the information provided on a question. If an accounting profit is given, then starting with the accounting profit, adjust for prohibited deductions, exemptions, and additional allowable deductions. The below framework is based on the assumption that the taxable income is calculated from scratch. Computation of Taxation Income GROSS INCOME - sec 8 Sale of goods or service                                                          ...
Read more

IAS 16 Accounting for Acqusition by trade-in, donation of Assets, including VAT Implications

Image
In this article, I cover how to journalize the acquisition of an item of PPE by way of trade-in, where the figures in question are VAT inclusive and both parties are registered operators. I also cover how to account for the donation of an item of PPE. Consider the following question:              SOLUTION WORKINGS Article Details Written by: Joseph Gondo  Nitty-Gritty Private College Call/WhatsApp: +263 78 637 6813 ...... Sir Josef'
Read more