Yakub02
Banned
Definition:
Property, plant and equipment Property, plant and equipment are tangible items that:
(a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and
(b) are expected to be used during more than one period.
A bearer plant is a living plant that:
a. is used in the production or supply of agricultural produce;
b. is expected to bear produce for more than one period; and
c. has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales
Bearer plants meet the definition of property, plant and equipment in IAS 16 and their operation is similar to that of manufacturing.
Initial recognition The cost of an item of property, plant and equipment must be recognised as an asset if, and only if:
it is probable that future economic benefits associated with the item will flow to the entity; and
the cost of the item can be measured reliably. Each part of an asset that has a cost that is significant in relation to the total cost of the item must be depreciated separately. This means that the cost of an asset might be split into several different assets and each depreciated separately.
Property, plant and equipment Property, plant and equipment are tangible items that:
(a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and
(b) are expected to be used during more than one period.
A bearer plant is a living plant that:
a. is used in the production or supply of agricultural produce;
b. is expected to bear produce for more than one period; and
c. has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales
Bearer plants meet the definition of property, plant and equipment in IAS 16 and their operation is similar to that of manufacturing.
Initial recognition The cost of an item of property, plant and equipment must be recognised as an asset if, and only if:
it is probable that future economic benefits associated with the item will flow to the entity; and
the cost of the item can be measured reliably. Each part of an asset that has a cost that is significant in relation to the total cost of the item must be depreciated separately. This means that the cost of an asset might be split into several different assets and each depreciated separately.
