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Finance & Accounting
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IAS 16 Property Plant and Equipment Name Instructor IAS 16 Property Plant and Equipment IAS 16 Property, Plant and Equipment provides the general outline of the numerous accounting treatments to be applied to most types of property, plant and equipment. Initially, Property, plant and equipment were measured at its initial cost but has consequently with time changed it being measured using a cost revaluation model and depreciated with the depreciated amount being allocated systematically over its useful life (International Accounting Standards Board, 2006).


IAS 16 requires that the recognition principle is applied to all property, plant and equipment costs only at their occurrence. Amongst other things, the costs include the initial costs incurred for either the acquisition or the construction of an item of property plant and equipment and the subsequent costs that are incurred for replacement of parts or service. There exists two types of accounting models under IAS 16. These include the cost model and the revaluation model (International Accounting Standards Board, 2006). While the cost model requires that assets are assessed at costs that are less than the accumulated depreciation and the impairment, the revaluation model requires that the assets be recorded at a revaluated amount hence making its fair value at the date of revaluation less the subsequent depreciation and impairment only with provisions that the fair value can be measured with much reliability. The company that we will be taking into consideration is ING Group N.V., a global financial services firm that is based in the Netherlands (ING Group, 2012). ...
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