IAS 16 - Property, Plant and Equipment removes the minimum value criteria for an asset to be recorded as a tangible asset, this would lead to a significant increase in the balance of Non-current asset on the financial statement.
Revaluation mode- if applicable may increase or decrease the value of the Tangible asset of the entity – reflecting the fair value of the asset at the date of revaluation. The impact of the revaluation model will be presented on the Statement of Other Comprehensive Income (as introduced in IAS 1 - Presentation of Financial Statement). Fair value assessment using the revaluation is presented in IFRS 13 - Fair value measurement.
By applying IAS 16, Property, Plant and Equipment shall not be carried at more than recoverable amount (Recoverable amount is the higher of (a) the asset’s fair value less costs to sell and (b) its value in use).
Accounting policy for amortization expenses related tools and other physical assets currently recording as Prepayments will change under the application of the IAS 16 - Property, Plant and Equipment.
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