• Property Plant Equipment
    13/08/2012 Initial recognition of PP&E • Cost of an item is recognised as an asset if: • it is probable that economic benefits will flow to the entity, and • the cost can be reliably measured Where future economic benefits are not expected to flow to the entity, costs incurred should be expensed. Component...
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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 the...
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  • Land Securities
    Case I: Land Securities Group Should Land Securities choose the cost or fair value model for reporting its investment property in its consolidated financial statements? a) Explain the financial statement effects of the different models b) Consider the perspectives of management, (current and potential)...
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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 carrying...
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  • THis paper
    This recognition principle is applied to all property, plant, and equipment costs at the time they are incurred. These costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. IAS...
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  • Reading robindronath
    Accounting 2 © 4Point Learning Systems Inc., 2011 Amortization & Revaluation of Property, Property Plant & Equipment 3 1 16/06/2010 © 4Point Learning Systems Inc., 2011 Definitions • Amortization matches the cost of a property, plant & equipment to the period of economic benefit ...
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  • Corporate Accounting
    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 property and equipment at revalue amount. Different models give different result and therefore...
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  • Accounting
    than one period. Acknowledgment: The cost of an item or Plant, Property & Equipment will be assessed as an asset if, and only if: a) it is possible that future economic benefits associated with the item will run to the entity; and b) The cost of the item can be calculated reliably...
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  • Accounting Standards - Essay
    and * The cost of the asset can be measured reliably. This recognition principle is applied to all property, plant, and equipment costs at the time they are incurred. These costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently...
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  • Ias16
    to be used during more than one period. The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if: (a) it is probable that future economic benefits associated with the item will flow to the entity; and (b) the cost of the item can be measured reliably. Measurement...
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  • Land Securities Group (a): Choosing Cost or Fair Value on Adoption of Ifrs
    9-105-014 EDWARD J. RIEDL Land Securities Group (A): Choosing Cost or Fair Value on Adoption of IFRS In June 2002 the Council of Ministers of the European Union approved a regulation, proposed by the European Commission in early 2001, to require publicly traded companies on European exchanges...
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  • AB1102 Notes
    involvement and effective control over the goods sold - Inflow of economic benefits is probable - Amount of revenue can be measured reliably - Cost incurred or to be incurred can be measured reliably Credit Sales DR AR XXX CR Sales Revenue XXX To record the sale DR...
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  • HBS Case
     Case: Land Securities Group (A): Choosing Cost or Fair Value on Adoption of IFRS Case Number: 9-105-014 Topic: Financial Reporting and Control Description: A U.K. real estate firm, required to adopt international accounting standards (IAS) by 2005, must change the reporting of its primary...
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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?
    Value instead of Historical Cost for its valuations of Property, Plant and Equipment? IFRS defines Fair value as the amount for which an asset could be exchanged or a liability settled between knowledgeable willing parties in an arms length transaction. Whereas Historical cost ignores the amount the asset...
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  • Ias16
    be used during more than one period. The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if: (a) it is probable that future economic benefits associated with the item will flow to the entity; (b) the cost of the item can be measured reliably. Measurement...
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  • U.S. Gaap vs. Ifrs on Depreciation
    GAAP and IFRS both view depreciation as allocation of cost over an asset’s life. There are three steps of the depreciation process: firstly find depreciable base of the asset, and then estimate asset’s useful life and last choose a method of cost apportionment that best matches revenue flow from the...
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  • Land Securities
    As of March 31, 2003, Land Securities Group used the revaluation method to account for its investment properties. As an investment property company, the business of Land Securities consists of acquiring and managing commercial real estate in the United Kingdom. The Company generates income through rental...
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  • The Choice of Investment Property Valuation After Ifrs Adoption.
    in Malaysia and named as Financial Reporting Standard (FRS) focuses more on the fair value reporting of assets and liabilities instead of historical cost accounting which have been used in the previous local Generally Accepted Accounting Practices (GAAP). This standard’s objective on fair value reporting...
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  • Positive Accounting Theory
    “Explanation” means providing reasons for observed practice. For example, positive accounting theory seeks to explain why firms continue to use historical cost accounting and why certain firms switch between a numbers of accounting techniques. • “Prediction” of accounting practice means that the theory predicts...
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  • Corporate Accounting
    asset are: Identifiable • control that being able to obtain benefits from the asset • future economic benefits, such as revenues or reduced future costs An intangible asset is identifiable when it: • is distinguishable • arises from other legal rights, regardless of whether those rights are transferable...
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