IFRS: Property, Plant and Equipment

by Wayne Bartlett

Property, Plant and Equipment (PPE) plays a crucial role in the financial statements of many entities. This course explains all the key accounting requirements and disclosures and discusses them in detail and is designed to enable you to make sound judgements as well as to understand the standards.

This course is not currently available

This course will enable you to

  • Recognise what the overall rule for a PPE asset is
  • Understand how the cost of an asset is charged against profits in a way that reflects its usage
  • Define key concepts in various PPE disclosures such as impairments and business combinations
  • Decide if an asset is impaired and if so, what actions to follow
  • Identify key rules with relation to estimating future cash flows, and recognising and measuring impairment losses

About the course

Property, Plant and Equipment (PPE) plays a crucial role in the financial statements of many entities. They often make up one of the largest items on the statement of financial position and also play a big part in the statement of comprehensive income through the charging of depreciation and impairment. Accounting for them appropriately is therefore often vital.

This course looks at accounting for PPE through two Standards in particular. IAS 16 is the IFRS Standard that covers PPE specifically and IAS 36 covers the connected issue of impairment. The course explains all the key accounting requirements and disclosures and discusses them in detail, and is designed to enable you to make sound judgements as well as to understand the standards.

Look inside

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Contents

  • Recognition Rules for PPE
    • What is the objective and scope of IAS 16?
    • What is the overall rule on recognition?
    • What are capitalisation thresholds?
    • What happens when PPE has more than one element involved?
    • How should a PPE asset be measured initially?
    • How should an asset be measured after initial recognition?
    • When should a PPE asset be derecognised?
  • Depreciation
    • What is depreciation?
    • What depreciation methods should be used?
    • How often should asset lives and residual value be reviewed?
    • How should depreciation be accounted for?
  • Disclosures
    • What PPE disclosures are required by IAS 16?
    • What is an impairment?
    • What is a business combination?
    • What is a net foreign exchange difference on translation?
    • Are there other additional disclosures necessary?
    • What about disclosures relating to revaluations?
  • Impairments
    • What is the overall objective of IAS 36?
    • Are any specific areas omitted from IAS 36?
    • What might indicate an asset is impaired?
    • How do we measure "recoverable amount"?
    • What are the rules on estimating future cash flows?
    • How do we recognise and measure an impairment loss?

How it works

Author

Wayne Bartlett

Wayne is an internationally acclaimed speaker and trainer on all aspects of public and private sector accounting and auditing standards. He has been instrumental in helping to develop the profession internationally and has taken lead roles in the development of new professional bodies and the accounting profession in Mozambique and Rwanda, and been extensively involved in developing financial reporting in many countries across the globe.

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This course is not currently available. To find out more, please get in touch.