What are the recognition criteria for property plant and equipment?
- it is probable that future economic benefits associated with the item will flow to the entity; and.
- the cost of the item can be measured reliably.
Similarly, what is the recognition criteria for assets?
Assets: An asset is recognized in the balance sheet when it is probable that the future economic benefits will flow to the entity and the asset has a cost or value that can be measured reliably. The economic benefits contribute, directly or indirectly, in the form of cash or cash equivalents.
Likewise, what is IAS 16 Property plant and equipment? IAS 16 applies to property, plant and equipment (PPE). The standard itself defines PPE as "tangible items that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and are expected to be used during more than one [accounting] period."
Subsequently, one may also ask, what is classified as property plant equipment?
Property, plant, and equipment (PP&E) are a company's physical or tangible long-term assets that typically have a life of more than one year. Examples of PP&E include buildings, machinery, land, office equipment, furniture, and vehicles. Companies list their net PP&E on their financial statements.
How is an impairment loss on property plant and equipment determined and measured under IFRS?
Under IAS 36, an impairment loss arises when an assets recoverable amount is less than CV; where recoverable amount is the greater of net selling price & value in use.