New UK GAAP 2015: Application of FRS 100-102 in the UK

Chapter 13 Property, plant and equipment

1 Introduction

2 Comparison between Section 17, previous UK GAAP and IFRS

   2.1 Key differences between Section 17 and previous UK GAAP

       2.1.1 Measurement of residual values

       2.1.2 Revaluation model

       2.1.3 Initial adoption of revaluation model

       2.1.4 Disclosure

   2.2 Key differences between Section 17 and IFRS

       2.2.1 Accounting for non-current assets held for sale

       2.2.2 Revenue-based depreciation method

       2.2.3 Disclosures

3 Requirements of Section 17 for property, plant and equipment

   3.1 Terms used in Section 17

   3.2 Scope of Section 17

   3.3 Recognition

       3.3.1 Aspects of recognition

1. 3.3.1.A Spare parts and minor items
2. 3.3.1.B Environmental and safety equipment
3. 3.3.1.C Property economic benefits and property developments
4. 3.3.1.D New technology costs – PP&E or intangible assets?
5. 3.3.1.E Classification of items as inventory or PP&E when minimum levels are maintained
6. 3.3.1.F Production stripping costs of surface mines

       3.3.2 Accounting for parts (‘components’) of assets

1. 3.3.2.A Land and buildings

       3.3.3 Initial and subsequent expenditure

1. 3.3.3.A Cost of major inspections

       3.3.4 Properties with mixed use

   3.4 Measurement at initial recognition

       3.4.1 Elements of cost and cost measurement

1. 3.4.1.A ‘Directly attributable’ costs
2. 3.4.1.B Borrowing costs
3. 3.4.1.C Costs that are not PP&E costs
4. 3.4.1.D Cessation of capitalisation
5. 3.4.1.E Self-built assets
6. 3.4.1.F ...