IAS 16 PROPERTY, PLANT AND EQUIPMENT

1. are tangible assets that:

1.1. 1. It has an entity for its use in the production or supply of goods and services.

1.2. 2. Expected to be used for a period or more.

2. Recognition

2.1. It is recognized when

2.1.1. 1. It is probable that the entity recognizes the future economic benefits derived from it.

2.1.2. 2. The cost of the item can be measured reliably.

3. Measurement of the cost:

3.1. The cost of an item that belongs to property, plant and equipment must be the equivalent price in cash on the date on which it was recognized.

4. Depreciation:

4.1. Depreciation will be done separately by class of significant components

4.2. The method applied to an asset will be reviewed at least at the end of each annual period.

5. Deterioration

5.1. Impairment is determined if there are impairment indicators

5.2. If there are indicators of impairment, it is determined (impairment = carrying amount then recovered value)

6. Disclosure

6.1. Useful lives or depreciation rates

6.2. Amount of books and accumulated depreciation

6.3. A reconciliation of values at the beginning and end of the period

6.4. The amount of recognized disbursements

6.5. The amount of acquisition commitments