• 2023 Issued Standard – IAS 16
  The 2023 Issued Standards include all amendments issued up to and including 1 January 2023.

Registration is required to access the free version of the Issued Standards, which do not include additional documents that accompany the full standard (such as illustrative examples, implementation guidance and basis for conclusions).

Property, plant and equipment (PPE) should be recognised initially at cost.

• Cost comprises all directly attributable costs in bringing the asset to the location and condition necessary for normal use.
• Subsequently, either the cost or revaluation model may be applied. An entity must apply the same measurement model consistently to each class of PPE.
• Revaluation surpluses are recognised as other comprehensive income and accumulated in equity.
• Items of PPE must be depreciated on a systematic basis over their useful life.
• On disposal, the difference between the carrying amount of the asset and proceeds received is recognised in profit or loss.

UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Our FRS 101 page gives more information on which entities qualify and the criteria to be met.