International GAAP 2013: Generally Accepted Accounting Principles under International Financial Reporting Standards

Chapter 20

Property, plant and equipment

1 Introduction

2 The requirements of IAS 16

2.1 Scope

2.2 Definitions used in IAS 16

3 Recognition

3.1 Aspects of recognition

3.1.1 Spare parts and minor items

3.1.2 Environmental and safety equipment

3.1.3 Property economic benefits and property developments

3.1.4 New technology costs – PP&E or intangible asset?

3.1.5 Classification of items as inventory or PP&E when minimum levels are maintained

3.1.6 Production stripping costs of surface mines

3.2 Accounting for parts (‘components’) of assets

3.3 Initial and subsequent expenditure

3.3.1 Major inspections

4 Measurement at recognition

4.1 Elements of cost and cost measurement

4.1.1 ‘Directly attributable’ costs

4.1.1.A Operating lease costs during the construction of an asset

4.1.2 Borrowing costs

4.1.3 Administration and other general overheads

4.1.4 Cessation of capitalisation

4.1.5 Self-built assets

4.1.6 Deferred payment

4.1.7 Land and buildings to be redeveloped

4.1.8 Transfers of assets from customers (IFRIC 18)

4.1.9 Contingent pricing

4.2 Incidental and non-incidental income

4.2.1 Income earned while bringing the asset to the intended location and condition

4.2.2 Income received during the construction of property

4.2.3 Liquidated damages

4.3 Accounting for changes in decommissioning and restoration costs

4.4 Exchanges of assets

4.5 Assets held under finance leases

4.6 Assets acquired with the assistance of government grants

5 Measurement after recognition: Cost model

5.1 Significant ...