International Accounting Standard 16

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Chapter one: Property, Plant and Equipment: A Brief Overview The purpose of International Accounting Standard 16 (IAS 16) is to outline the treatment for most types of property, plant and equipment. Initially, Property, Plant and Equipment will be realised at its cost and after that it will be measured either using a cost or revaluation model. The asset will be depreciated in such a way that the depreciable amount will be assigned over the period of its useful life on a methodical basis. [IASPlus, n.d] 1.1 Short Background on IAS 16 IAS 16 was issued in December 1993 by the International Accounting Standards Committee, and reissued in December 2003. IAS16 has been amended numerous times with the latest amendment taking effect on 1 January 2016. [IASPlus, n.d] 1.2 …show more content…

These items are to be used over more than one financial

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