International GAAP 2021

Chapter 18Property, plant and equipment

• 1 INTRODUCTION
• 2 THE REQUIREMENTS OF IAS 16
  • 2.1 Scope
  • 2.2 Definitions used in IAS 16
  • 2.3 IFRS 16 and the presentation of right-of-use assets
• 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 Classification as 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
    • 3.1.7 Bearer plants
  • 3.2 Accounting for parts (‘components’) of assets
  • 3.3 Initial and subsequent expenditure
    • 3.3.1 Types of parts
    • 3.3.2 Major inspections
• 4 MEASUREMENT AT RECOGNITION
  • 4.1 Elements of cost and cost measurement
    • 4.1.1 ‘Directly attributable’ costs
    • 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
    • 4.1.9 Variable and contingent consideration
  • 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 during construction
  • 4.3 Accounting for changes in decommissioning and restoration costs
  • 4.4 Exchanges of assets
    • 4.4.1 Commercial substance
    • 4.4.2 Reliably measurable
  • 4.5 Assets held under ...