Wiley Interpretation and Application of IFRS Standards

9Property, Plant and Equipment

1. Introduction
2. Definitions of Terms
3. Recognition and Measurement
   1. Property, Plant and Equipment
      1. Initial Measurement
      2. Decommissioning Cost Included in Initial Measurement
      3. Changes in Decommissioning Costs
      4. Initial Recognition of Self-Constructed Assets
      5. Exchanges of Assets
      6. Costs Incurred Subsequent to Purchase or Self-Construction
      7. Depreciation of Property, Plant and Equipment
   2. Depreciation Methods Based on Time
      1. Partial-Year Depreciation
      2. Depreciation Method Based on Actual Physical Use—Units of Production Method
      3. Residual Value
      4. Useful Lives
      5. Tax Methods
      6. Leasehold Improvements
   3. Revaluation of Property, Plant and Equipment
      1. Fair value
      2. Revaluation Applied to All Assets in the Class
      3. Revaluation Adjustments
      4. Initial Revaluation
      5. Subsequent Revaluation
      6. Methods of Adjusting Accumulated Depreciation at the Date of Revaluation
      7. Deferred Tax Effects of Revaluations
4. Derecognition
5. Disclosures
   1. Non-Monetary (Exchange) Transactions
      1. Non-Reciprocal Transfers
   2. Transfers of Assets from Customers
6. Examples of Financial Statement Disclosures
7. US GAAP Comparison

Introduction

Long-lived tangible and intangible assets (which include property, plant and equipment as well as development costs, various intellectual property intangibles and goodwill) hold the promise of providing economic benefits to an entity for a period greater than that covered by the current year's financial statements. Accordingly, these assets must be capitalised rather than immediately expensed, and their costs ...