Revaluation Model And Cost Model Essays and Term Papers

  • 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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  • 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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  • 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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  • 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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  • hello

    treatment for most types of property, plant and equipment. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated so that its depreciable amount is allocated on a systematic basis over its useful life. IAS 16 was...

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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 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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  • 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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  • 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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  • 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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  • 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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  • 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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  • 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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  • Ias 16 Upl

    and the cost of the item can be measured reliably. Future economic benefits occur when the risks and rewards of the asset's ownership have passed to the entity. PPE is initially recognised at its cost, which is the fair value of the consideration given. All the directly attributable costs necessary...

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  • auditing

    Chapter 6 Revaluations and impairment testing of non-current assets Review questions 6.1 If an upward asset revaluation has been undertaken for a depreciable asset, then depreciation in subsequent periods will increase, as the depreciation will be based on the higher revalued amount. Profit on sale...

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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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  • Ifrs Impairment of Assets

    past event – Probable future economic inflow (revenue or cost saving) Recognition • Must meet the definition of asset • Must meet criteria set by IAS 38 – Cost of asset reliably measured – Probable economic inflow Recognized at cost!! Recognition – Internally generated • The standard states...

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