IAS 16 Property, Plant and Equipment: Summary - applies in 2024

[@CPDbox]

Thanks for watching! Let’s connect: *Newsletter: www.cpdbox.com/ *LinkedIn: www.linkedin.com/in/silviamahutova/ *Instagram: instagram.com/cpdbox/

[@justaguy3323]

Why do i learn better on youtube than physical classes! Thank you!

[@Eona_Catacutan]

PPE has always been a complicated topic for me. Thank you for explaining it in a simple manner, especially its measurement, recognition, and depreciation. It assisted me well in accomplishing our task of analyzing our chosen company’s financial statements based on PAS/IASs.

[@niyanthritharamesh5562]

I have been following the ifrs website of yours for articles and KZbin for all the short clips on ias and ifrs.. And the articles, I must say they are sooo engaging... Where most of the articles I have come across gets too technical... You have made it so simple and interesting... Thanks a lot Silvia :)

[@CACMA_PBV]

Yes ... agree

[@chenwahchew7154]

Totally agree. Usually accounting articles are so dry, mostly just regurgitating the standards' requirements. Sylvia's are always engaging and phrases in a relatable manner

[@cliffordsefahsarpong3502]

Pls can you share the link to the website?

[@cliffordsefahsarpong3502]

Pls can you share the link to the website?

[@abigaelmwangi6638]

How do you get those articles???do I have to pay..if so how much???

[@fahadalsalamah6320]

Hi Silvia , Honesty, i haven't yet heard the video , but it will definitely be wonderful as usual at all the following levels: 1. On the level of ease of language used. 2. On the level of deep understanding of IFRS/IAS. 3. On the level of great ability to communicate the idea and information required to the listener. Thank you so much Silvia🌹 Regards, Fahad

[@arnielizaacuna2939]

This executive summary of IAS 16 helped me recall what I learned in our class discussion when I was preparing for my midterms.

[@augustinzouzou6786]

Silvia , honestly you master this paper than anyone else i know , be blessed

[@saxvgs6189]

Can you please explain which of the below accounting treatments is correct: A building takes 2 years to complete with the following details. -Site preparation began at 01/02/2020 and completed at 31/04/2020, cost and invoiced 100,000. -Building frame construction began at 01/06/2020 and completed at 30/11/2020, cost and invoiced 3000,000. -Floor construction began at 15/01/2021 and completed at 31/05/2021, cost and invoiced 500,000. -Full construction and building available for use at 31/09/2021,cost and invoiced 350,000. 1) Accounting treatment The building should be recognized as a non current asset in Balance Sheet at 31/12/2021 for the cost of 3950,000 At 31/09/2021 Dr Non Current Asset 3950,000 Cr Bank 3950,000 OR 2) Accounting treatment Recognize the initial component of the non current asset in the Balance Sheet of the year ended 31/12/2020 for the cost of 3100,000: At 31/04/2020 Dr Non Current Asset 100,000 Cr Bank 100,000 At 30/11/2020 Dr Non Current Asset 3000,000 Cr Bank 3000,000 Recognize the remaining component of the non current asset in the Balance Sheet of the year ended 31/12/2021 for the cost of 850,000: At 31/05/2021 Dr Non Current Asset 500,000 Cr Bank 100,000 At 30/09/2021 Dr Non Current Asset 350,000 Cr Bank 350,000

[@CPDbox]

I will respond on my website later on, just please send it to me by the email. Thank you!

[@kailaaquino3710]

Done rewatching I now have a clearer understanding of PPE thank you so much!

[@user-fc5bc9ki7p]

Thank you for this informative video, ma'am! I gained a deeper understanding of PAS 16. This is such a nice supplemental material in addition to what we have discussed in class during our midterms.

[@woubeshetshawell9314]

I appreciate you that you are a wonderful instructor due to the fact that your methodology is simple and understandable.

[@jelainesoriano]

Thank you so much, Ma'am Silvia for this very informative video. I found it super easy-to-understand. God bless!

[@giseleteghen4247]

Thanks so much for this I jus discovered ur channel and am happy to be hear pls can u do ias 19 and IFRS 2

[@idoculta4463]

Muito legal ver uma brasileira com um canal de accounts, em ingles. obrigad, muito mais facil de entender do que os sotaques indianos que eu tenho encontrado ahah valeuuu, excelente didatica tambem,

[@vincejustinejavier5362]

The discussion of the standard was simplified. I really understood the topic. Thank you!

[@kylehawthorn9231]

But if an asset was revalued. Isn't that the new value of the asset? Why would you add depreciation onto an asset that we just had valued?

[@CPDbox]

Because, you do not revalue every year, just here and there (3-5 years), within the regular intervals. This is the revaluation model under IAS 16, however, we also have fair value model for investment properties under IAS 40 - there, you can revalue each year without any depreciation charged. You can learn more here: www.cpdbox.com/cost-revaluation-models-ppe-ifrs/ (scroll to Myth n. 3).

[@meharhasnatmahmud5926]

What's the difference between selling and disposal ?I guess selling involves inventories and disposal involves PPE which doesn't contain Future Ecnomic benefits

[@dinolucas2697]

Hello, i need some help on classify property plant and equipment for determining the cost. Could you please help me?

[@olumideelijah6430]

Assets that are used to produce other assets like inventories to what extend should their depreciation be part of the inventories cost?

[@alvesjunior1980]

How to book advance payment for purchasing an Equipment? Is it current asset or fixed assets? Thank you in advance

[@probodhamadusanaka2632]

Hi Silvia, I am not sure if you would see this message but would appreciate if you can answer. My question is what is the difference between revaluation deficit and impairment? My understanding is that impairment is only applicable when the company adopts cost model. But if the company adopts revaluation model, then they do not need to apply IAS 36 impairment. Please clarify this.

[@CPDbox]

I think you answered it yourself. Basically, anything that gets remeasured on the fair value basis, is NOT a subject to impairment testing, because the fair value remeasurement takes care of that.

[@probodhamadusanaka2632]

@@CPDbox Thank you!

[@meytithveasna339]

I have a question to ask you about purchasing stuffs from a vendor including external hard disk .the vendor free an external hard disk .how we record that gift?thanks

[@user-lh2lm6wl3h]

Hy Silvia, First of all, huge thanks to you for such wonderful summary videos. It helps me a lot in my CA Studies. I have a short query and that is How can we treat the waiver or discounting of the Cost of assets by our vendor while paying the amount on later dates? Shall we have to treat such discounts as our expenses or it shall be reduced from the cost of Assets itself as subsequent recognition of assets? Waiting for your response Thank You 🙂

[@mnavaid8055]

I found this beneficial

[@rosemarievillapa5086]

once again, thank you for this video lecture!

[@hopekofi6189]

Hi Silvia, please how do you handle and an asset that is fully depreciated and still in use

[@Girl-on-fire]

I would like to know as well

[@harshbachhawat3309]

Pranam Jai Jinendra What about painting the asset before warehouse of company will it be added to cost price or somewhere else ? (Please also mention reason with Answer)

[@iqbalahmed5921]

Very useful. Thanks

[@aaroacademy]

Thanks, very informative video it was really helpful

[@awilmohamed7149]

Thnk you teacher how would get ppt

[@jitendrajaisingani5881]

nice explanation thankyou for your efforts

[@drasserngolo3057]

❤

[@jananiraman4288]

I have a doubt mam is real estate business comes under comes under IAS 16?

[@nojibullah3395]

Hi Silvia, I have a query. We have received a license from one of our prime regulator which is recognised as intangible asset. Total license cost will be made in five installments. Therefore, the intangible asset has been recognised at PV and the rest will be charged as interest with the passage of time. In the second year, we could not pay the installment on time. Due to delay in payment, the regulator will charge some interest/penalty. What should be the accounting treatment of the interest/penalty for delayed payment?

[@CPDbox]

I would say in profit or loss. You should not capitalize penalties as they are not directly attributable to bringing the asset to its intended location and use. They relate more to your financial discipline that to the asset itself.

[@CACMA_PBV]

Hai Silvia...This is wonderful video thank you for your summary video. I have mailed you regarding my query regarding financial instruments. Please clarify that

[@jayprakashroy7770]

thanks u so much mamm

[@muhammadsameer674]

How can we do accounting of an assets which fair value is unknown and the company is using the revaluation method. Kindly guide sir.

[@CPDbox]

I would kindly guide you to the standard IFRS 13 Fair Value Measurement, there are some methods to follow when there is no market for an asset. However - the question is whether the company should follow the revaluation model at all, when the fair values are not available.

[@muhammadsameer674]

@@CPDbox Can you please tell me what if the question provides no data regarding the FV of the specific assets and simply say FV is unknow, what will be the case. Should we follow the cost model for that specific case as the FV for the other assets are available.

[@bharatiya07]

Hello mam Is their any ifrs certification course available on website??

[@ahmedgamal3945]

Hello Silvia. Can an entity stop depreciating an asset if it is idle? ie Buses company during Covid19

[@CPDbox]

That depends on the depreciation method. If you use units of production method, that is - you depreciate based on number of units produced (by a machine, for example), then it is logical to depreciate zero if you produce zero. However, when you depreciate straight-line, for example building, then it would be difficult to justify zero depreciation during covid, because the building still wears and tears off despite the pandemics. Depreciation should reflect the asset's consumption. As for tax rule - check them in your laws.

[@parishykhan4489]

Please lecture about depression .

[@anjoedaviscatholic9143]

Nicely done!

[@diepnguyen4285]

Thank you so much

[@wilmarobles4717]

Hi Sylvia. I nèed your expert advice. Our company is going office condo unit which is due for completion in 2023. First payment is 30% this year and the 70% upon turnover. Should i already recognize the 100% cost as fixed asset? How about depreciation?

[@CPDbox]

Hi Wilma, without seeing a contract, I don't know. It depends when the control of partially completed asset transfers to the buyer. If in 2023, then recognize just advances paid. If as you pay, then recognize partially completed PPE.

[@wilmarobles4717]

@@CPDbox thank you , Silvia.

[@0401412740]

What about IBR and disclosure requirements with IFRS 16

[@CPDbox]

This is a summary of IAS 16, not IFRS 16.

[@mohammedismail235]

Good job 👍

[@user-wx6jt4yo8b]

thanks

[@gershomngosa6203]

Great

[@thoughtmagic902]

If I subscribe for the IFRS kit, will also be able to ask any IFRS query to you? Can you answer one. Under IAS 38 can first year software license be capitalized along with software development cost even if the license period is 12 months?

[@CPDbox]

No, you cannot capitalize it, as it expires in one year (i.e. has different useful life than software itself).

[@thoughtmagic902]

Thanks, can you also reply first part.

[@CPDbox]

@@thoughtmagic902 I help people if something is not clear inside the IFRS Kit.

[@thoughtmagic902]

Enrolled

[@tadelelikisa8965]

OK

[@ahmedelfeky5672]

you are Greaaaaaat

[@MuhammadAli-bp3sl]

nice

[@mattvandenberg3508]

Can you narrate my life?

[@CPDbox]

?

[@muslimah97]

❤

[@icmabtalukdar6189]

Awesome