PPE – Property Plant & Equipment

PAS 16

PPE Measurement is at cost.

Subsequent Measurement;

Cost Model – the asset is carried at it’s cost less any accumulated depreciation and any accumulated any impairment loss.

Revaluation  Model – the asset is carried at revalued amount, being it’s fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluation will be done every 3 – 5 years or every one year regularly.

*Regardless of model any accumulated depreciation and impairment losses recognized. In choosing the measurement is one time decision and cannot be change later.

If a revaluation results in an increase in value, it should be credited to equity under the heading “Revaluation Surplus”, unless represents reversal of previous expense.

A decrease arising as a result of revaluation should be recognized as expense to the extent of surplus.

*Realization of surplus, if asset is non-depreciable upon disposal.



About Jonathan Ruiz CPA

Newbie Mentor and one of the influential author in the Philippines setting. His also the founder of PAM Academy and Developer of PAM PSE TRACKER application.
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