List of useful info, resources and documents available on other websites about IAS 16 – Property, Plant and Equipment. Summary of IAS 16 – IASPlus Full Text of the IAS 16 as at 31 December 2010 provided by IASB (You need to register) … Con…

As per IAS 16 PPE is in location and conditions necessary for it to be capable of operating in the manner intended by management, which will usually be the date of practical completion of the physical asset, cost recognition ceases.
My questions are
If building construction is completed but electricity is not started yet should building be capitalized.

IF INCOME APPROACH IS CONSIDERED IN PREVIOUS YEARS FOR COMPLATED PROPERTIES AND NOW DURING REVALUATION A NEWLY CONSTRUCTED PROPERTY IS INCLUDED THEN HOW INCOME APPROACH WOULD BE APPLIED FOR NEWLY CONSUTRCUTED WHICH IS NOT YET LEASED.
Can cost approach …

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What could be evidence for justifying software life revision from 5 years to 3 years. So that prospective application of change.

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Hi to everybody.
My question is that:
the initial costs to acquire an asset like;
the negotiation and traveling expenses incurred by management to acquire an asset, what about such costs of that assets;
in case before finalizing of the deal;
a. it is certain that the asset would be acquired.
b. its is not certain the asset would be acquired.
in both the cases above whether to capitalize such costs or expensed????

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Hi sir. My question is that the costs of negotiation and traveling for acquiring an assets by management, what about the costs whether it should be capitalized or expensed
in case;
a. it is certain from the very day that the assets would be acquired.
b. it is uncertain that the asset would be acquired before finalizing of the deal.????

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Dear Experts,
If useful life of computer software is revised from 5 years to 2 years, this would be a change in estimate as per IAS-8 and change will be prospectively.
However, in practical example
Cost $ 50000 as on 31-12-09
Accumulated Depreciation $ 30000 as on 31-12-09
NBV 20000 as on 31-12-09
If life is revised from 1-1-10 from 5 years to 3 years then
NBV 20000 would be amortized over 2 years from 1-1-10.
but what if some softwares have already finished their original life after 3 years, what would be effect.
HB

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How would you treat a fixed asset in the situation below?
The energy supplier operates a piece of equipment rented from the government for a defined period of time. In the end of the period the company should transfer the asset back to the government.
The energy supplier makes an agreement with the government, according to which the company makes some inseparable improvements to this equipment and the government reduces the rental fee by 50%. The improvements form a separate component of fixed assets.
The company capitalizes expenses for the new component construction, …

Hello everyone, can somebody give me names of some mining companies who has got huge gains when they opted for this exemption of deemed cost for thier mines

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The Excavation cost to fix a tank underground is a part of tank cost. Likewise the motors/valves needed to install a tank and a loading rack for filling the tank – should be also a part of the tank cost. However, considering their significant $ value one should componentized the assets into Motors, Loading rack and Land improvements (excavation). Land improvements should be part of the tank cost as this is a sunk cost and can’t be separated possibly from the tank cost.
Question 1 – In case the company decides …

How will you report the ppe in the consolidated balance sheet if some of the units use historical cost and some the market valuation?
If there is no historical cost data available, could you use the market value?
thnak you

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Hello,
How much can be the maximum life given to Improvements for owned property as per IAS 16.  If the life of the property – building can be 40 years, Can we give the same life to Improvments done to the buidlings?
Thanks a lot.
Saj House

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Hello to all IFRS expert,
Our company elects to use fair value at the date of transition as the deemed cost $100 of an item of property, plant and equipment. How we can account the difference $5 of the carrying amount $95 of the asset at that date with its deemed cost $100? Is it correct that we debit PPE $5 and credit Return Earning $5?

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Company A Parent company Own land and lease out to a company B a subsidiary. Company A will construct hotel for B. Construction cost will be debited to fixed assets. Company B has entered into an agreement with Company C for hotel operation.
Land leased will be an operating lease for both A and B
Hotel building will be capitalized in company A however will be used by company B for earning revenue
Is this correct.
What if company B has to incur some techincal expense during constrcution and pay to COMPANY C can these …

Dear all
If the life of an Asset is revised. Should we give effect retrospectively or prospectively. Please give refernce from IFRS/IAS.
and is it mandotary to revise the whole class of assets life. e.g if one truck is working in desert /rough areas and one is in city area do we have to revised the life of both?
Regards

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Information for those who have not registered at iasb.org
Live web presentation introducing the exposure draft on Derecognition ? 27 May 2009 
In March 2009 the IASB published an exposure draft on Derecognition. The exposure draft is open for public comment until 31 July 2009.
Stephen Cooper, Member of the IASB and Michael Mueller, Practice Fellow, will be introducing the exposure draft in a live web presentation on 27 May 2009. The same web presentation will be repeated later in the day, for the benefit of interested parties in different time zones.
The web presentation and …

A company buys land from govt in a economic zone. The land is on a govt. lease for 99 years. should amortization/dep = 1/99 years be charged on the land.
As a normal practice (substance form) , most of the lands are on lease. The intent is to give it to owners but no clear definition is given in the lease deed as to what will happen after 99 years. An individual may have limited life, but a organization having perpetual existence, may live more than 100 years…….regards eish taneja

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Dear Reader,
A company pays for Land which is on a lease for 99 years. As per the norms available, most of the lands are on 99 years lease. Should depreciation/amortization= 1/99 years be provided on the same per IAS 16 or IAS17.
Under which para this is covered in IFRS……….regards eish taneja

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Dear Experts,
If an asset is purchased from a supplier for which payment is to be made in 3 years on monthly instalments including cost + finance chg. Can we show assets and Capex loan in B/S and depreciation on assets can be charged.
Hemant

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