1¥16 Property .

Plant & Equipment

Propertyplanttiequipment
Property .
Plant 4 Equipment are
tangible assets held
by an
entity for than
one a for use
in the production or
supply of goods or services
,

for rental to others ,

or for administrative
purposes .

Recognitioncriteria.
of property ttplant
•

n item ,
and equipment should be
recognised as an

asset when :

← it is probable that future economic benefits associated with the asset will
and
flowto the entity ;

- the cost of the asset can be measured

reliably ( t AS 16
, para 7)

• Initialmeasure.me
An item of property plant ,
and equipment should
initially be measured

at its cost :

-
include all costs involved in
bringing the asset into
working
condition
 List price xxx

Less Trade discount

:
xxx )
Add Import
:
duty xxx

Add
Add
:

:
Transportation
Insurance in
cost
transit
xxx

xxx 1¥ .

Add :
Installation Cost xxx

Add Removal cost

) × Hotel .

!ooE§M05①
:
"
'

preparation Site 5 .

Add Pre production

:
testing.±×××
-

5
Add Professional fees
: xxx .

5
Compulsory disposal cost xxx
Add :

Cost of Asset
, 500
* Cash discount received should be treated as other income

* Staff training cost must not be capitalized .

* Abnormal cost should be treated

↳ (unexpected costs / errors )
as Revenue Expenditure .

ftp.g
* Initial Operating loss because
offender utilization of AssetLdvapoi t al i zed )
↳ means
notgogiogod
your Business
•

Exceptionsofstaff-ra.im#
army pilot training
,

i .
US
UK fees of students KAEW and ACCA
company giving
.

2 .

SSYbsseegwuehftrffenua.FI?en#- capitalized if that fwb sequent expenditure

increases the
future economic
benefit! . .

Eiggtasienuineasgsseifuecgenomic benefit p_ ,
0 2
Increase efficiency / quality of output
.

in
g. Decrease in
Operating cost .
Q Company bought
. " a noncurrent asset
- r n n -
- n - - -
-
for$l oooo
=

Useful life of asset :

5y_ears
At the end of year 2 did
subsequent expenditure of 6000
company total
.

Subsequent expenditure in .
the life of ASSET to 6
years
Req PIL and SOFP Extract of
: Year 3 .

Raised NBV-1200 Phl .

→
.

Cost

s.qo.li#EtMAodep=2o0O.1dep--
10,000
.

.
-

}
2000

µ}y.
6

Life NBV 6000

yrs
- .

✓
Sub Exp -6000g -
.
.

soft .

1200€
Remaining life =4yn .

R→
-

=RevisedNBV
yr dep
12000 O
per
-

-4--3 Fun .
QI Co bought NCA for $2100.0 at yro
.
a
.

Life 10-yea.rs
-
-

This
Subsequent ftp.enditurqattheendoter?--$2#o.o
.
.

subsequent expenditure didnt .ch?mge the life of asset , but .

it increased
sat .

Req Pul da SOFP Extract for Year 4 ?

: =

Cost 20,000
NBV 5.11
per yr
-

Yr I
Czooo )
Yr 2 (2000 ) depreciation ¥fe
Yr 3 62000 )
=

- e- 35000--0
14000
.

NBV
7µs
.

Exp 2¥
50004
Add sub
:

Tsao .
=
.

Dep Expiry CW .
-
- -
→ Income Staten ( yr 4) .

NBV atend
of yr 4¥
⇐
-

-7 SOFP
of Yr4 .
①3 :
Co .

bought a car for $40 ,

ooo
.
atfro
.

an Accident of
Life =
5¥ .
. . . .
.
There was this car at
the end of Year 2 .

Repair cost =
4000 . This Accident reduced the total
life
of asset to
4#
Req :P 4L and SOFP Extract for Yr 24 Yr 3 = ?

Cost 40,000 forYr24Y#

Yr I deep ( 80N ) Yr2P#_

/
.

Yrzdep (good
-
.
.
- e - -
-

f Dep Exp
pair cost
oooo

I.
.

NBV 240N .

EE .

Yr 3 deep (12000 ) 24001€

Yr3P#-
.
→

yrs 2.

/Depem¥
-

Yu Benvdatgyrs #soft .

payeardef.sk#Reriglife
.

.
 per year def
I
IAS should
Booking def Exp
→ Ace .
to -
16 we start
;
.

of wtiEe
" "
an Asset

not¥:¥pE
 ( pastpaper) .

- - - -

-
✓
- - - r

Endicott F
-

: ng
-

I
-
-

. -
- I
x
-
_
-
hors .

-
-
I kiss .

- -
- -
this .

F-
 Cost 920am
.
.
Revised NBA 670,00 .

#q
def-Eoyhgfffgzpgepdepi h ookxrsososepxy. 8 50hr. i t
40
27900 otsepxo
g. .

Ft¥ qpv.qtopoo.dk 9,000 "

'
' '

XG .

↳NBVs 551,000
Snbtxpi200,0002 .

670,000 .

patdqg.EE
Lop .
-
-
-

ipso.no
Less Trade dis 201 ( 210,00)

pahourdef.IA-R.tl
- .

÷: 4500ha
life inflows
frei g ht charges 401ha
Add . -

301am .
-

=
.

Add Installation lost 28M '

.

Add
qzqooo 20100 -

pre-production Testing 2-21 ← -

PEL Extract
600ohm 'HE3Efefx6
.

costgasd-2-9.ae $l50/hr
Pahodmq Deftxp
- ooo

pecxiesotsepxa
.

40100
stafftrajlost
.

270,00
Defstxp
.

20,000
. -

Maintain lost .

pllaitaicelostzqooo
Cathead.is.md.o4aqq 1420003
¥ -
.

-
 ±

t¥*g
. .

Maintaining-2901
-39¥ .
 Simpuelhtaert
¥6 too too
.

, ,

ielof
Interest
Compound "
⑥ FF:
T.FI:9#
" no saw
l 2 3 G-
O
.

i=l④
s⇐Pa→µf
So 1000C It 017 =
1331 .
 GO.org#l2ooio0S=
• a
O i -

toy - 2 .

: ÷ ÷÷aeai i s ¥
5. ④Cti Pass x t
→

P H Chin
ftp.y
.

p.vn#o..ss..aatigI:e
-
.
.

:*
.

Gang .

NF
eIH.gg .

0
idol.

-
Is

Inttxploo
- -

'
loan Hoo
chair tooo
.
.
. .

.to#.-. .

↳
unwinding official

summary All liabilities which are

we need to Record
payabl e
9-
year
or
After ,
such liabilities

at present Value / Discounting .

e¥* toy *zi@
- -
-

€-79369211926
Table Ma p
-

O -
I - I
i.gg.
Int Exp 1783
.

ban -
.

Pits
Atif
← 2601=22291 Cash 2600
←
( I -10.085

¥22,297
loan 22,291
. .

I
confMpos.IT/Decozom#ityiStIf-YouBoyhtMxning
is whoever will
Damage
Rights
this
for
toys govt
.

Area will fix it

condition

in the
end and we have
Damaged this area from
Day 1 ( )
By digging ;
Means
obl i g ati n
Event Arises
g Dayon 1
,
Now we must

need to Book
complete liability Dayto

%¥#-E③
on

pp¥i
←*yao comet
;D dear .

.
sfrGmfadsoydigBdbAAaat#
Step .

① Compute the Present

Vahey company di s posal cost
.

ppy⑧-
①Then relate the

③ This
YFPEE =

element will be depreciated .

,

,
I

calculate
④ This Feed to
liabihgkm Discord
-

Unwinding
I 6.
Bought a Platform for $401 .

Condition with Platform

=

↳ Go needs which will

to decommission it
After 10yd
'
.

,
cost $121

i/am.
Plldgbmpukogdispkste . E o. p i o ReqPeaL9e@p.
E-xtadfI.in?y.ogaiab P .
I
f#-k
-

Mythmaking Ftp ?
pqi.liabih.tt
Eta
9ns
'
.

Pity
gofppshtyrrot .

ME
Pu for Htt
44.63 PPEE(44.63-44633
def
¥-44534 Noncurrent
.

-40.167
Isnt 0.463
Exp
. -

-4.463 ¥o%g 5093

Deftop¥67
.

go

Sg
T To

-FEt
=.
-
- - - -

1¥¥i 12
I t
Ine
.FI?jhgxB. ETExpO5s9
'

Xt
ops .

05591 .
k¥01 -225.598 S0fPAsAt30tJnex7
I
def
.

Banksy y Pyres nioncurrntnsset

321am licence(25598-32)
- -
e

Plleflomfrdispbst.ch#.,y-- 5.598
←
¥4
.ph#lt3Jex7 .

k¥598

ftp.E#;. : s;fnion-cuIt iat-De-Comisswif

.

wabiig
.
61578
3759¥
 i

Asset
Complex ie Asset with Different components
Different life
tearing
useful
.

life
→ Each
component depreciated separately
is on its own .

→ But in So FP it
Reported is
single
Asset as a .

→ But in Notes
Breakup given
is .

eg Aircraft Ship
,
.

sofa
→
20ps
.

6o.ro
Def Engine izy
. -
.

Engine =

¥tu¥Y # exterior
-
-

Kootenai,r I•→
.

5Th .

E-utroa.im/a .
 ti in 8 W 9 XO Xl x 4x4 x
4¥
we , w .
, . , ,

- .
-
-

r
- r e r
- - -

l - -

* .
-
.
 Rafiq
cost-150

!q?
Aecdeprioo
.

.
soap .

Etat 8YB .

NBK 50
.

Subsequent Exp
' '

Wb .

cost Ace .

def .
NBV .

PHY -1¥ .

bits
'

*8196)
Ship fabric 300 204
=22/amnw
.

fat.ithEAal5o .

tfzepsxoea .org so .

Populism 100 .

l÷i÷¥' East -2¥ '

t -
I sofp .

ea-oda.is#s.Oaxoyn?D-dep.*myNBHIO
Cottar
.

30*4*4 .

otsepx .
 Phl XIE 30
tsepxs .

Cold
digs
Kofi
boson
) 25
.

. .
-

Dep Exploratory spy

.

.
14 .

Def ExpKakinada 22 .

Repainting( fabric)
ship Fabric) .
20

Def Exp ship ⇐

.
.

Ans
=.
 Overleaping Its like
Adding a
component to Non current
.
-

Asset Few
After
Evey years
.

It must life
Capitalized If them
→

greater
be its own is
,

A-
year
.

→ and one Haul must be

depreciated on its own life
(like
complex Asset .

CE co .

Bought a Plant for $300 , ooo , with a life

of 204ns .
Co

to overhaul it
needs After
every 5ps at a host
g
40, ooo .

Reg : FS Extract for Yrt ? =

 this
life .

/ "

GOETHE
.Y2oys
life Cost -
3001000 .

2ggiyoe.BA/ann-Accdef.fm/an.NBr-E9ooe
.C2100DDef.ov9Had--4gyooo
Def.ReigPlat
-
.