ACCA FRCAPSULE (The Ultimate FR book) by CA Vishal Jain

Jul 17, 2026

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ACCA FR Capsule “The Ultimate FR book” by CA Vishal Jain focuses on IAS 16 Property, Plant and Equipment and provides structured exam-ready notes. It explains recognition criteria tied to probable future economic benefits and reliable cost measurement, then details the measurement principles for initial and subsequent costs. The document covers cost composition, treatment of directly attributable costs, and dismantling/restoration obligations with illustrative provision examples. It also compares the cost model versus revaluation model, including revaluation frequency, asset-by-asset treatment of revaluation gains and losses, and replacement accounting when component cost breakdown is or isn’t available.

LanguageEnglish

CategoryExam

FormatPDF

Pages91

Reading Time3 h 49 min

# ACCA FRCAPSULE (The Ultimate FR book) By, CA Vishal Jain(Educator-ACCA FR&SBR) ## 1.Meaning of Property,Plant &Equipment Property,plant and equipment are: ## 2.Recognition Principle Probable future economic benefits are expected to flow to entity;and Costs can be measured reliably ## 3.Measurement Principle Initial Measurement Initial costs Subsequent costs CHAPTER 1IAS 16:PROPERTY,PLANT &EQUIPMENT | Tangible items | Held for USE | Life>ONE period | | --- | --- | --- | | | Production or supply of goods / services | | | | Rental to others | | | | Administrative works | | | Applicable standard Scope of IAS 16 | | | --- | --- | | PPE,held for use | PPE under IAS 16 | | PPE,held for sale in ordinary course of business | Inventory under IAS 2 | | PPE,held for sale | IFRS 5 | | PROPERTY,held for rental | IP under IAS 40 | | Plant and equipment held for rental | PPE under IAS 16 | | Biological assets | IAS 41 | | Bearer plants | PPE under IAS 16 | An item of PPE shall be recognized as an asset in financial statements,if and only if: | Recognition principle SATISFIED Recognise PPE in FS. | Recognition principle NOT SATISFIED Expense off to P&L. | | --- | --- | Subsequent Measurement Cost Model OR Revaluation Model CA VISHAL JAIN |Telegram:accafinancialreporting ## 4.Measurement Principle -Initial Measurement @COST An item of PPE that qualifies for recognition shall be measured at its COST Meaning of cCOSTPurchase price of PPEXXXAdd:Non-refundable taxes /import duties /etc.XXXLess:Trade discounts or rebates(refer NOTE below)(XXX)Less:Finance costs(Deferred payments)(XXX)Add:Finance costs(under IAS 23)XXXAdd:any directly attributable costs incurred to bring the assetXXXto the LOCATION and CONDITION for intended use by themanagement Add:PRESENT VALUE of estimated costs of dismantling andXXXremoving the item and restoring the site on which it islocatedTotal amount to be capitalised XXX NOTE:Cash discount(or settlememt discount,if any)should NOT be adjusted with cost offasset.Rather,the same should be recognised as "other income"in P&L. NOTE:Costs of Testing may be capitalised as part of cost of PPE,but any proceeds earned bythe company in selling any items produced as a result of that testing should be accounted forin PL. Meaning of DIRECTLY ATTRIBUTABLE COSTS INCLUDES EXCLUDES | Employee costs for construction of PPE. | Costs of staff training | | --- | --- | | Costs of site preparation | Costs of opening a new facility | | Initial delivery and handling costs | Costs of relocating or reorganizing part or all of an entity's operations. | | Installation and assembly costs | Costs of introducing a new product or | | Professional fees | Costs incurred after an item is capable of being operated in a manner intended by management. | | Testing costs -whether the asset is

Jul 17, 2026

Upload by Anda