Answer to Question #208332 in Accounting for Musenga sichona

Question

What Scenarios can lead to a deviation from the proper use of the accounting standard IAS 16 Property, Plant and Equipment in an organisation.

Answer 1

Accounting standard IAS 16 applies to property plant and equipment except in the following scenarios: first, in the case where another standard gives a different accounting for the same for example, non-current assets held for sale accounted for in IFRS 5. Secondly, if it applies to the bearer plant and not the production plant on it. Thirdly, if property plant and equipment is used to maintain the first three categories of assets. Fourthly, if the cost model in the standard also applies to investment accounted for using the cost model in IAS 40.