Definition
Tangible asset that is: Propert
Held for production or supply of goods and
services, rental to others or admin purposes
Expected to be used for more than one y, Plant
reporting period
Recognition
and
Recognise when the asset definition is met and control transfers
Specific assets require certain things to occur for control to transfer such as a
deed transfer for land and buildings or when a vehicle is registered in the
entity’s name
Measurement at initial recognition
Measured at cost price less any refundable taxes and costs not included in
cost price as per IAS16
Cost includes the following:
Purchase price
Import duties
Brokerage fees
Legal expenses
Costs directly related to bring asset to location and state fit for use as
deemed by management
*Any revenue from test products or test services reduces any testing
costs*
PV of costs to dismantle and rehabilitate environment or site forms part
of cost
Subsequent Measurement
Depreciation
Depreciation begins from the date the asset is ready for use and ceases when
the asset is
Fully written off
Derecognised
Disposed
Transferred to Non-Current Assets held for sale (IFRS 5)
Depreciable amount = Cost – Residual Value
*Revisions of residual value and useful life are applicable from the beginning
of the year even if taken at the end*
Carrying Amt = Cost – Acc Dep – Acc Impairment
Depreciation methods
Tangible asset that is: Propert
Held for production or supply of goods and
services, rental to others or admin purposes
Expected to be used for more than one y, Plant
reporting period
Recognition
and
Recognise when the asset definition is met and control transfers
Specific assets require certain things to occur for control to transfer such as a
deed transfer for land and buildings or when a vehicle is registered in the
entity’s name
Measurement at initial recognition
Measured at cost price less any refundable taxes and costs not included in
cost price as per IAS16
Cost includes the following:
Purchase price
Import duties
Brokerage fees
Legal expenses
Costs directly related to bring asset to location and state fit for use as
deemed by management
*Any revenue from test products or test services reduces any testing
costs*
PV of costs to dismantle and rehabilitate environment or site forms part
of cost
Subsequent Measurement
Depreciation
Depreciation begins from the date the asset is ready for use and ceases when
the asset is
Fully written off
Derecognised
Disposed
Transferred to Non-Current Assets held for sale (IFRS 5)
Depreciable amount = Cost – Residual Value
*Revisions of residual value and useful life are applicable from the beginning
of the year even if taken at the end*
Carrying Amt = Cost – Acc Dep – Acc Impairment
Depreciation methods
