International Accounting Standard 16
Property, Plant and Equipment
This version includes amendments resulting from IFRSs issued up to 31 December 2008.
IAS 16 Property, Plant and Equipment was issued by the International Accounting Standards Committee in December 1993. It replaced IAS 16 Accounting for Property, Plant and Equipment (issued in March 1982). IAS 16 was revid in 1998 and further amended in 2000.
The Standing Interpretations Committee developed three Interpretations relating to IAS 16:•SIC-6 Costs of Modifying Existing Software (issued May 1998)
•SIC-14 Property, Plant and Equipment—Compensation for the Impairment or Loss of Items (issued December 1998)
•SIC-23 Property, Plant and Equipment—Major Inspection or Overhaul Costs (issued July 2000).
In April 2001 the International Accounting Standards Board (IASB) resolved that all Standards and Interpretations issued under previous Constitutions continued to be applicable unless and until they were amended or withdrawn.
In December 2003 the IASB issued a revid IAS 16. The revid standard also replaced SIC-6, SIC-14 and SIC-23.
Since then, IAS 16 has been amended by the following IFRSs:
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新年快乐祝福语•IFRS 2 Share-bad Payment (issued February 2004)
•IFRS 3 Business Combinations (issued March 2004)
•IFRS 5 Non-Current Asts Held for Sale and Discontinued Operations (issued March 2004)•IFRS 6 Exploration for and Evaluation of Mineral Resources (issued December 2004)
•IAS 23 Borrowing Costs (as revid in March 2007)*
•IAS 1 Prentation of Financial Statements (as revid in September 2007)*
•IFRS 3 Business Combinations (as revid in January 2008)†
•Improvements to IFRSs (issued May 2008).*
The following Interpretations refer to IAS 16:
•SIC-21 Income Taxes—Recovery of Revalued Non-Depreciable Asts (issued July 2000)
•SIC-29 Service Concession Arrangements: Disclosures
(issued December 2001 and subquently amended)
•SIC-32 Intangible Asts—Web Site Costs (issued March 2002 and subquently amended)
*effective date 1 January 2009
加州戴维斯分校†effective date 1 July 2009
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•IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities (issued May 2004 and subquently amended)
•IFRIC 4 Determining whether an Arrangement contains a Lea (issued December 2004)•IFRIC 12 Service Concession Arrangements
(issued November 2006 and subquently amended).
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C ONTENTS
paragraphs
INTRODUCTION IN1–IN15 INTERNATIONAL ACCOUNTING STANDARD 16
PROPERTY, PLANT AND EQUIPMENT
OBJECTIVE1 SCOPE2–5 DEFINITIONS6 RECOGNITION7–14 Initial costs11 Subquent costs12–14 MEASUREMENT AT RECOGNITION15–28 Elements of cost16–22 Measurement of cost23–28 MEASUREMENT AFTER RECOGNITION29–66 Cost model30 Revaluation model31–42 Depreciation43–62 Depreciable amount and depreciation period50–59 Depreciation method60–62 Impairment63 Compensation for impairment65–66 DERECOGNITION67–72 DISCLOSURE73–79 TRANSITIONAL PROVISIONS80 EFFECTIVE DATE81–81E WITHDRAWAL OF OTHER PRONOUNCEMENTS82–83 APPENDIX
Amendments to other pronouncements
APPROVAL BY THE BOARD OF IAS16 ISSUED IN DECEMBER 2003
BASIS FOR CONCLUSIONS
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International Accounting Standard 16 Property, Plant and Equipment (IAS 16) is t out in paragraphs 1–83 and the Appendix. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB. IAS 16 should be read in the context of its objective and the Basis for Conclusions, the Preface to International Financial Reporting Standards and the Framework for the Preparation and Prentation of Financial Statements. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for lecting and applying accounting policies in the abnce of explicit guidance.
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Introduction
IN1International Accounting Standard 16 Property, Plant and Equipment(IAS 16) replaces IAS 16 Property, Plant and Equipment(revid in 1998), and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged. The Standard also replaces the following Interpretations:
•SIC-6 Costs of Modifying Existing Software
•SIC-14 Property, Plant and Equipment—Compensation for the Impairment or Loss of Items
苏州社保查询•SIC-23 Property, Plant and Equipment—Major Inspection or Overhaul Costs. Reasons for revising IAS 16
IN2The International Accounting Standards Board developed this revid IAS 16 as part of its project on Improvements to International Accounting Standards.
The project was undertaken in the light of queries and criticisms raid in relation to the Standards by curities regulators, professional accountants and other interested parties. The objectives of the project were to reduce or eliminate alternatives, redundancies and conflicts within the Standards, to deal with some convergence issues and to make other improvements.
IN3For IAS 16 the Board’s main objective was a limited revision to provide additional guidance and clarification on lected matters. The Board did not reconsider the fundamental approach to the accounting for property, plant and equipment contained in IAS 16.
嘴干是什么原因The main changes
IN4The main changes from the previous version of IAS 16 are described below.卓尔金星
Scope
冷吃兔的做法IN5This Standard clarifies that an entity is required to apply the principles of this Standard to items of property, plant and equipment ud to develop or maintain
(a) biological asts and (b) mineral rights and mineral rerves such as oil,
natural gas and similar non-regenerative resources.
Recognition: subquent costs
IN6An entity evaluates under the general recognition principle all property, plant and equipment costs at the time they are incurred. Tho costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subquently to add to, replace part of, or rvice an item. The previous version of IAS 16 contained two recognition principles.
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An entity applied the cond recognition principle to subquent costs.
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Measurement at recognition: ast dismantlement, removal and restoration costs
IN7The cost of an item of property, plant and equipment includes the costs of its dismantlement, removal or restoration, the obligation for which an entity incurs as a conquence of installing the item. Its cost also includes the costs of its dismantlement, removal or restoration, the obligation for which an entity incurs as a conquence of using the item during a particular period for purpos other than to produce inventories during that period. The previous version of IAS16 included within its scope only the costs incurred as a conquence of installing the item.
Measurement at recognition: ast exchange transactions IN8An entity is required to measure an item of property, plant and equipment acquired in exchange for a non-monetary ast or asts, or a combination of monetary and non-monetary asts, at fair value unless the exchange transaction lacks commercial substance. Under the previous version of IAS 16, an entity measured such an acquired ast at fair value unless the exchanged asts were similar.
Measurement after recognition: revaluation model
IN9If fair value can be measured reliably, an entity may carry all items of property, plant and equipment of a class at a revalued amount, which is the fair value of the items at the date of the reva
luation less any subquent accumulated depreciation and accumulated impairment loss. Under the previous version of IAS16, u of revalued amounts did not depend on whether fair values were reliably measurable.
Depreciation: unit of measure
IN10An entity is required to determine the depreciation charge parately for each significant part of an item of property, plant and equipment. The previous version of IAS 16 did not as clearly t out this requirement.
Depreciation: depreciable amount
IN11An entity is required to measure the residual value of an item of property, plant and equipment as the amount it estimates it would receive currently for the ast if the ast were already of the age and in the condition expected at the end of its uful life. The previous version of IAS 16 did not specify whether the residual value was to be this amount or the amount, inclusive of the effects of inflation, that an entity expected to receive in the future on the ast’s actual retirement date.
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