• Property Plant Equipment
    • Initial estimate of costs of dismantling, removing the item or restoring the site 2 13/08/2012 Measurement subsequent to initial recognition • • • • • • AASB 116 allows a choice of two possible measurement models: Cost model Revaluation model Accounting policy choice of this...
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  • Cost vs Revaluation
    cost vs revaluation How does the cost model differ from the revaluation model? In your opinion, which of the two models would company managers prefer adopting (i.e. the cost model or the revaluation model) in accounting for property, plant and equipment? Discuss. (2.5 marks) To explain how...
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  • Land Securities
    | 7.800 | 7.824 | | Operating Profit | 264 | 230 | Total Assets | 8.868 | 9.008 | | | | | Liabilities | 2.831 | 3.445 | | | | | Equity | 6.037 | 5.563 | | | | | Total Equity | 8.868 | 9.008 | | | | | Revaluation Model to Cost Model transformation * Revaluation Reserve...
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  • Long Term Asset
    P1 revaluation model The revaluation model is an alternative to the cost model for the periodic valuation and reporting of long-lived assets. IFRS permit the use of either the revaluation model or the cost model, while under GAAP; only the cost model is permitted. Revaluation model changes the...
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  • Reading robindronath
    amortization – Contra account to capital assets – Cost Model: Represents the total amortization taken by the company on the associated capital assets(s) since acquisition – Revaluation Model: may only represent the amortization since the last revaluation • Net Book Value – Recorded amount less...
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  • THis paper
    subsequent to initial recognition IAS 16 permits two accounting models: Cost model. The asset is carried at cost less accumulated depreciation and impairment. [IAS 16.30] Revaluation model. The asset is carried at a revalued amount, being its fair value at the date of revaluation less subsequent...
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  • Corporate Accounting
    AASB 116 Para 30 provides two measurement rules for the “Property, plant and equipment”. First measurement rule is Cost model which allows recording the plant property and equipment at cost, recoverable amount and the second measurement rule is Revaluation model which allows recording plant...
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  • Land Securities Group (a): Choosing Cost or Fair Value on Adoption of Ifrs
    IFRS, Land Securities was applying U.K. accounting standards, which required investment properties to be reported using the revaluation model. However, adoption of IFRS would require Land Securities to choose between either the cost or fair value models to report its investment properties...
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  • Accounting
    Cost of site research. * Initial deliverance and treatment cost. * Installation and gathering cost. * Cost of testing after deduction the net earnings from selling any items launched. * Professional fees. REVALUATION MODEL * Value again regularly. * Value again all assets...
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  • Ias16
    period for purposes other than to produce inventories during that period. Measurement after recognition: An entity shall choose either the cost model or the revaluation model as its accounting policy and shall apply that policy to an entire class of property, plant and equipment. Cost model: After...
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  • AB1102 Notes
    model or Revaluation Model Cost Model - An asset is impaired when its carrying amount exceeds its recoverable amount - Carrying amount: Net book Value = Cost – acc depreciation – acc impairment loss - Recoverable amount: higher of its a) FV less costs to sell (market value) b) Value in...
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  • HBS Case
    primary asset (investment property) from the revaluation model under U.K. GAAP to either the cost or fair-value model under IAS. This would have a number of effects on European investment property firms, including Land Securities. Learning Objective: To allow students to compare both the mechanics...
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  • Accounting Standards - Essay
    assets are depreciated in the same way as under the cost model (see below). If a revaluation results in an increase in value, it should be credited to other comprehensive income and accumulated in equity under the heading "revaluation surplus" unless it represents the reversal of a revaluation...
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  • Ias16
    revaluation model as its accounting policy and shall apply that policy to an entire class of property, plant and equipment. Cost model: After recognition as an asset, an item of property, plant and equipment shall be carried at its cost less any accumulated depreciation and any accumulated impairment...
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  • Fair Value or Cost Mode Drivers of Choice for Ias 40
    . We do not suppose any relationship between managerial opportunism estimated by earnings smoothing and the choice of historical cost with IFRS1 revaluation, because this option has no impact on profit and loss. 5. Research Design Empirical Model and Variable Definitions Two statistical...
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  • Why Is Ifrs so Strong in Using Fair Value Instead of Historical Cost for Its Valuations of Property, Plant and Equipment?
    cost model and Revaluation model Cost model . Measurement after recognition in Cost model depreciation cost over useful life and in Revaluation model revaluation amount over useful life where depreciation at revalued amount to the useful life. In conclusion it can be said that IAS 16 provides...
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  • The Choice of Investment Property Valuation After Ifrs Adoption.
    , the value ‘after the initial recognition’ can either be stated using cost or revaluation model. Due to the adoption of FRS 140 (IAS 40), the revaluation model although received a good response from industry constituents as being the appropriate accounting treatment {text:bibliography-mark} , will...
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  • Positive Accounting Theory
    . Chapter 7 - Positive Theory Positive Accounting Theory How PAT attempt to explain in part the revaluation of assets under AASB116? It is the choice of accounting method between cost model and revaluation model. Given that AASB 116 (IAS 16) allows entities a choice between the cost model...
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  • Ifrs Impairment of Assets
    feasibility – market for the product/usefulness – Expenditures attributable to development reliably measured Initial recognition Eg. development expenditure The PIRATE criteria - Recognition Subsequent recognition • Cost model or Revaluation model Revaluation Model • If the...
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  • Corporate Accounting
    revaluation model. There are two conditions for this choice: > The measurement base has to be the same for all intangible assets in the same class. > The revaluation model can only be selected when strict conditions are satisfied. Cost model Under the cost model the intangible asset continues to...
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