The principal issues are the recognition of assets, the determination of their carrying amounts, and the depreciation charges and impairment losses to be recognized in relation to them. Cima f1 ias 16 property, plant and equipment initial. Ias 12 income taxes income taxesias 12 covers the general principles of accounting fortax. I am writing a mini dissertation on ias 16 ppe any guidance on sources for this topic or how to outline this. Technical summary this extract has been prepared by iasc foundation staff and has not been approved by the iasb. Ifrs 9 ias 39 derecognition of modified financial assets. Cost, less accumulated depreciation and any accumulated impairment losses, or revalued amount, less subsequent accumulated depreciation and any accumulated impairment losses. March 2017 this communication contains a general overview of the topic and is current as of march 31, 2017. It addresses ias 12s key application issues related to deferred taxes and includes interpretational guidance in. Such dividends are disclosed in the notes in accordance with ias 1 presentation of financial statements. Ias 16 property, plant and equipment a closer look. Ambuj11 on ias 12 deferred tax acca financial reporting. A library of ifrsrelated publications available for download and. Ias 16 was reissued in december 2003 and applies to.
International accounting standard 16 property, plant and equipment or ias 16 is an international financial reporting standard adopted by the international. The depreciable amount cost less residual value should be allocated on a systematic basis over the assets useful life ias 16. Ifric interpretation 22 foreign currency transactions and advance consideration references the conceptual framework for financial reporting ias 8 accounting policies, changes in accounting estimates and errors ias 21 the effects of changes in foreign exchange rates background 1 paragraph 21 of ias 21 the effects of changes in foreign exchange rates. Ias 11 construction contracts 59 ias 12 income taxes 60 ias 16 property, plant and equipment 62 ias 17 leases 65 ias 18 revenue 67 ias 19 2011 employee benefits 69 ias 20 accounting for government grants and disclosure of government assistance 72 ias 21 the effects of changes in foreign exchange rates 73 ias 23 borrowing costs 74. Ifric interpretations require ratification by the international accounting standards board board.
Critique on ias 16 ppe accounting community forum ifrs. Ias 16 establishes principles for recognising property, plant and equipment as assets, measuring their carrying amounts, and measuring the depreciation. Pas 16 web summaries ias 16 property plant and equipment. Definitions accounting profit profit or loss for a period before deducting tax expense. Ifric 22 foreign currency transactions and advance consideration. Deferred tax a chief financial officers guide to avoiding. The standard ias 12 revised replaces ias 12, accounting for income taxes ias 12 original. In december 2003 the iasb issued a revised ias 16 as part of its initial agenda of technical. Ifrs 16 specifies how an ifrs reporter will recognise, measure, present and disclose leases. The accounting standard ias 12 sets out the accounting treatment for income taxes, including all domestic and foreign taxes which are based on taxable profits and those payable by a subsidiary, associate or joint venture on distributions to the reporting entity. As at 1 january 2016 ias 11 construction contracts also refer. Ias 16 revaluation model 2015 2 p a g e depreciation under the revaluation model depreciation under the revaluation model is treated in the same manner as the cost method.
Income taxes is part of the international accounting standards ias and international financial reporting standards ifrs. However, after considering the unenthusiastic feedback, the international accounting standards board iasb has decided not to proceed with its proposals but to focus on practical issues with the existing standard. Iasb documents published to accompany international. In december 2014, the iasb issued amendments to ias 1 to further encourage. Ifric 17 distributions of noncash assets to owners. In 1998, ias 16 revised by ias 36, impairment of assets. International accounting standard 16 property, plant and equipment ias 16is set out in. Ifric interpretation 12 service concession arrangements. A practical guide to accounting for property under the. Ias 16 outlines the accounting treatment for most types of property, plant and equipment. Download pdf, 651kb ias 16 property, plant and equipment ifrs, ifrs summary notes, summary notes.
Ifrs 12 disclosure of interests in other entitiesdisclosure of summarised financial information about material joint ventures and associates issues of ifric update ias 16 property, plant and equipment and ias 2 inventoriescore inventories ias 16 property, plant and equipmentaccounting for proceeds and costs of testing on ppe. The principal issues are the recognition of assets, the determination of their carrying amounts, and the depreciation charges and impairment losses to. Sic25 income taxes changes in the tax status of an entity or its shareholders effective date periods beginning on or after 1 january 1998 temporary difference. Describe the recognition principles for deferred taxation. International accounting standard 16 property, plant and equipment ias 16is set out in paragraphs 183 and the appendix. Cima f1 ias 16 property, plant and equipment initial recognition. The committee also observed it had previously published agenda decisions discussing the scope of ias 12 in march 2006 and may 2009. Accordingly, regardless of whether an entity applies ias 12 or ias 37 when accounting for interest and penalties, the entity discloses information about those interest and penalties if it is material. All the paragraphs have equal authority but retain the iasc format of the standard when it was adopted by the iasb. For the requirements reference must be made to international financial reporting standards. This part presents the following accompanying documents. Ifric 16 hedges of a net investment in a foreign operation. The proposed amendments to ias 12 issued in march 2009 would have made significant changes. The original ias 12 required the companies to account for deferred taxes using the.
International accounting standard 16 property, plant and equipment this revised standard supersedes ias 16 1998 property, plant and equipment and should be applied for annual periods beginning on or after 1 january 2005. Ias 16 property, plant and equipment ifrs standards tracker. Ias 16 that was issued in march 1982 also replaced some parts in ias 4 depreciation accounting that was approved in november 1975. Ias 16 ias 38 ifric 12 variable payments for asset purchases and payments made by an operator to a grantor. Ifric 15 agreements for the construction of real estate effective date periods beginning on or after 1 january 1995 specific quantitativereporters e requirements. An entity using the cost model for investment property in accordance with ias 40 investment property shall use the. The major changes contained in respect of ias 12 original are as follows. Ias 16 property, plant and equipment sets out the requirements for the recognition of the assets, the determination of their carrying amounts, and the depreciation charges and impairment losses in relation to them. The iasc issued revised ias 16, accounting for property, plant and equipment, in december 1993, as part of the comparability of financial statements. Ifric 22 foreign currency transactions and advance.
Ias 16 property, plant and equipment 2017 07 2 cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when. The application of the principles addressed will depend upon the particular facts and circumstances of each individual case. The objective of ias 12 is to prescribe the accounting treatment for income taxes the main issue here is how to account for the current and future consequences of. May 16, 2017 ias 21 the effects of changes in foreign exchange rates 8 ias 23 borrowing costs 12 ias 24 related party disclosures 7 ias 26 accounting and reporting by retirement benefit plans 2 ias 27 separate financial statements 11 ias 28 investments in associates and joint ventures 3 ias 29 financial reporting in. The ifrs foundation provides free access through basic registration to the pdf files of the current years ifric interpretations part a of the issued standardsthe red book, as well as available translations of interpretations this section also provides high level and nontechnical summaries for the interpretations. Audit presentation of financial statements an ias plus guide september 2007. Property, plant and equipment introduction ias 16 property, plant and equipment was issued in december 2003 and is applicable to annual periods beginning on or after 1 january 2005. Ias 12 income taxes part 1 ias 12 income taxes part 2 the objectives of this elearning is to. Munich personal repec archive ias 16 property, plant and equipment a closer look muthupandian, k s the institute of cost and works accountants of india 20 march 2009 online at. Ifrs 9 ias 28 is measurement of longterm interests in associates and joint ventures, including impairment, in accordance with ifrs 9, ias 28, or both.
Ias 12 income taxes part 1 ias 12 income taxes part 2 the objectives of this elearning are to. The objective of ias 16 is to prescribe the accounting treatment for property, plant, and equipment. Describe the recognition principles for current taxation. Under the recognition principle in paragraph 7, an entity does not. Accounting policies, accounting estimates and errors ias 8. Ias 16 property, plant and equipment download pdf, 651kb ias 16 property, plant and equipment ifrs, ifrs summary notes, summary notes. Pdf ias 10 ec staff consolidated version as of 27 november 2009. Page 4 of 5 example 7 a dividend of 40,000, in relation to the financial year ending 31 december 20, was declared in january 2014 and paid on 12 january 2014. Comparison with ias 16, property, plant and equipment, ifric 1 and ifric 20.
Ias 12 revised is effective for fiscal years beginning on or after january 1 1998. Summary of ias 16 property, plant and equipment is initially recognised at cost. Current tax the amount of income taxes payable recoverable in respect of the taxable profit tax loss for a period. In developing this revised ipsas 16, the ipsasb adopted the policy of. Iasb documents published to accompany international accounting standard 12 income taxes the text of the unaccompanied ias 12 is contained in part a of this edition. The guide reflects the collective experience of grant thornton internationals ifrs team and member firm ifrs experts. Ifric 1 contains guidance on accounting for changes in decommissioning, restoration and similar liabilities that have previously been recognised both as part of the cost of an item of property, plant and equipment under ias 16 property, plant and equipment and as a provision liability under ias 37 provisions, contingent liabilities and contingent assets. Ifrs in focus edicion en espanol iasb emite enmiendas al. Ias 16 property, plant and equipment ifrs standards. Ias 16 property, plant and equipment replaced ias 16 accounting for property, plant and equipment issued in march 1982. Ifric 12 ifric interpretation 12 service concession arrangements. Ifric 12 clarifies how certain aspects of existing iasb literature are to be applied to arrangements whereby a government or other public sector body contracts with a private operator to develop or upgrade, operate and maintain the grantors infrastructure assets such as roads, bridges, tunnels, airports, energy distribution networks, prisons or hospitals. Ias 10 events after the reporting period as issued at 1 january 2012. Lessors continue to classify leases as operating or finance, with ifrs 16 s approach to.
Ias 23 borrowing costs 12 ias 24 related party disclosures 7 ias 26 accounting and reporting by retirement benefit plans 2 ias 27 separate financial statements 11. Ias 12 income taxes the objective of this standard is to prescribe the accounting treatment for income taxes. Links to summaries, analysis, history and resources for international financial reporting standards ifrs and international accounting standards ias, ifric interpretations, sic interpretations and other pronouncements issued by the international accounting standards board iasb and its related bodies. Find out more about the benefits of membership and joining details. Find articles, books and online resources providing quick links to the standard.
Ias 12 sets the accounting treatment of all taxable profits and losses, both national and foreign. Ias 16 applies to property that is, buildings held for use in the production or supply of goods or. Subsequent to initial recognition, property, plant and equipment is carried either at. Ias 16 property, plant and equipment the objective of this standard is to prescribe the accounting treatment for property. Issues 10 this interpretation sets out general principles on recognising and measuring the obligations and related. Aug 18, 2016 adeel august 18, 2016 august 23, 2016 2 comments on summary notes. Ifrs foundation, international accounting standards.
Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated so that its depreciable amount is allocated on a systematic basis over its useful life. Ias 16 property, plant and equipment ias 16 property, plant and equipment 2017 07 1 objective the objective of this standard is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entitys investment in its property, plant and. The latest effective date of the amendments is 1 january 20. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. A c c o u n t i n g s u m m a r y 2017 0 7 ias 10 events. A practical guide to accounting for property under the cost model pricewaterhousecoopers 2 introduction ias 16, property, plant and equipment includes guidance on how to account for property carried at cost.
Adeel august 18, 2016 august 23, 2016 2 comments on summary notes. A cost plus contract is a construction contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a. Ias 10 events after the reporting period ias 10 events after the reporting period 2017 07 1 objective this standard prescribes when an entity should adjust its financial statements for events after the reporting period and the disclosures that should be given about the date when the financial statements were authorised for issue and. Determine how to calculate an entity s current tax charge. Iasb documents published to accompany international accounting standard 1 presentation of financial statements the text of the unaccompanied ias 1 is contained in part a of this edition. The ifric update is a summary of the decisions reached by the ifrs interpretations committee committee in its public meetings decisions on an ifric interpretation become final only after the committee has taken a formal vote on the interpretation. Foreign currency transactions and advance consideration references the conceptual framework for financial reporting ias 8 accounting policies, changes in accounting estimates and errors ias 21 the effects of changes in foreign exchange rates background 1 paragraph 21 of ias 21 the effects of changes in foreign exchange rates requires an. Nz ias 12 this version is effective for reporting periods beginning on or after.