IAS 16 Non-Current Assets

May 8, 2026

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This document outlines the key aspects of IAS 16, focusing on Property, Plant, and Equipment (PP&E). It details the initial recognition of assets, emphasizing that recognition occurs when future economic benefits are probable and the cost can be reliably measured. The initial measurement includes the asset's cost and directly attributable expenses. The subsequent measurement section discusses two models: the cost model and the revaluation model. Under the cost model, assets are carried at cost less accumulated depreciation and impairment losses. The revaluation model involves carrying assets at their revalued amount, which reflects fair value, less subsequent accumulated depreciation and impairment losses. The document elaborates on depreciation, explaining its allocation over the asset's useful life using methods such as straight-line, reducing balance, or units of production. Revaluation procedures are also described: revaluation ensures the carrying amount aligns with fair value at regular intervals. Increases in value are credited to revaluation surplus in equity, while decreases are recognized as expenses in the income statement. Finally, the disclosure requirements are briefly mentioned, including the carrying amount, depreciation, and revaluation details. The document also highlights key educational and practical support features from FinanceSkul, such as full syllabus coverage, practical exam-simulating questions, and smart notes, along with access to their social media platforms.

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May 8, 2026