Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015

Chapter 13Property, Plant and Equipment and Investment Properties

1. Introduction
2. Recognition of an Item of Property, Plant and Equipment
3. Subsequent Measurement of Property, Plant and Equipment
4. Revaluation of Property, Plant and Equipment
5. Depreciation of Property, Plant and Equipment
6. Asset Construction
7. Subsequent Expenditure on Property, Plant and Equipment
8. Qualifying Criteria for Investment Property
9. Accounting Treatment for Investment Property
10. Investment Property Subject to Leasing Arrangements
11. Deferred Tax Issues Relating to Investment Property
12. Reclassification of Investment Property to Property, Plant and Equipment
13. Transitional Issues
14. Disclosure Issues

Introduction

This chapter deals with two issues relating to tangible fixed assets: that of investment property and property, plant and equipment. FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland deals with these two issues in separate sections, namely Section 16 Investment Property and Section 17 Property, Plant and Equipment. The two Sections have been combined in this chapter to reflect the fact that in practice these issues are dealt with interchangeably but are found within the same area of the balance sheet (statement of financial position). The first part of the chapter will deal with property, plant and equipment whilst the latter part of the chapter looks at the accounting treatment and disclosure issues surrounding investment property.

Property, plant and equipment are commonly ...