Property, Plant and Equipment IAS 16.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * IAS 16 - Measurement after Recognition: Revaluation Model (RM) * IAS 16 - Measurement after Recognition: Revaluation Model (RM) * IAS 16 - Measurement after Recognition: Revaluation Model (RM) * IAS 16 - Measurement after Recognition: Revaluation Model (RM) New depreciation rate is needed as of January 1, Year 4: $900 carrying amount = $41 per year 25 – 3 years * IAS 16 - Measurement after Recognition: Revaluation Model (RM) Revaluation Surplus account? As asset is used, transfer difference between depreciation taken using RM and amount if CM had been used - directly to Retained Earnings, OR Transfer directly to Retained Earnings when asset derecognized * IAS 16 - Measurement after Recognition Note - Revaluation Model is not widely used. KPMG : The Application of IFRS: Choices in Practice – International Financial Reporting Standards, December 2006 : see page 16 of 44 http://www.kpmg.co.uk/pubs/304574_ifrg.pdf * IAS 16 - Derecognition When disposed of, or when no future economic benefits to be received from use or disposal Remove carrying amount from statement of financial position Gain or loss = difference between carrying amount of asset (or part of asset if a replacement) and net proceeds on disposal * IAS 16 - Disclosure Whether CM or RM : Depreciation methods used Depreciation rate or useful lives Beginning and ending balances and reconciliation of the two for gross amount and total of accumulated depreciation and impairment losses * IAS 16 - Disclosure If RM used: Date of revaluation Independent valuation? Methods, techniques used Assumptions made in determining FV Amounts if CM had been used Details of changes in Revaluation Surplus Current GAAP Comparisons * Pages 43-45/144 of http://www.kpmg.co.uk/pubs/2007%20IFRS%20compared%20to%20US%20GAAP%20-%20An%20overview.pdf * IFRS Financial Statement Disclosures - CM BHP Billiton Ltd. /bbCo