課程講義sbr知識階段全a21non current asset

1、IAS16 Property plant and equipmentDefinitionTangible items that:a)are held by an entity for use in the production or supply of goods or services, for rental to others, or for administrative purposes; andare expected to be used during more than one periodb)RecognitionProbable that future economic ben

2、efits will flow to the entityCost can be measured reliablyMeasurement at recognitionPurchase priceNon-refundable taxesattributable costs Employee benefit costs Site preparationInitial delivery & handling costs Installation & assembly costs Professional feesCosts of testingSite restoration pr

3、ovision (IAS 37),Finance costsCapitalised for qualifying assets (IAS 23)Exchanges Cost = normally FV of asset given upEx1IAS 16 Property, Plant and Equipment requires an asset to be measured at cost on its original recognition in the financial statements. EW used its own staff, assisted by contracto

4、rs when required, to construct a new warehouse for its own use.Identify whether the costs listed below should be capitalised or expensed.CapitaliseExpenseClearance of the site prior to work commencingProfessional surveyors' fees for managing the construction workEW's own staff wages for time

5、 spent working on the constructionAn allocation of EW's administration costs, based on EW staff time spentEx2 - Pilot paper Q1(201612Q16)Which TWO of the following items should be capitalised within the initial carrying amount of an item of plant?A.B.Cost ofCost of plantthe plant to the factorya

6、 new power supply required to operate theC.D.Cost of a three-yearCost of a three-week plantagreementcourse for staff to operate theMeasurement after recognitionCost less accumulated depreciation/impairment lossesRevaluation mRevalued amount less subsequent accumulated depreciation/ impairment losses

7、Upward revaluation to OCI- 1st to OCI- then in P/LIf a revaluation increases the value of an asset, the increase is presented as other comprehensive income (and disclosed as an item that will not be recycled to profit or loss in subsequent periods) and held in a revaluation surplus within other comp

8、onents of equityIf a revaluation decreases the value of the asset, the decrease should be recognised immediately in profit or loss, unless there is are valuation reserve representing a surplus on theasset. (2018/09)Valuation:- Sufficient regularity that carrying amount does not differ materially fro

9、m FV at end of reporting period- Revalue entire classDepreciationAll PPE with a finite useful life must be depreciated (Land normally has unlimited life not depreciated).Depreciation should be charged on each significant part of an item of PPE separately. Parts which have the same useful life can be

10、 grouped together.Depreciation begins when the asset is available for use andcontinues until the asset is derecognised, even if it is.The depreciation method, residual value and the useful life of an asset should be reviewed annually and revised if necessary. Any adjustments are accounted for as a c

11、hange in accounting estimateRepairs and reconditioningThe costs of servicing and repairing PPE cannot be capitalised. These costs are expensed to the statement of profit or lossSome parts of an asset may require regular replacement (e.g. the seats in an aircraft. The replacement parts should be capi

12、talised.Some assets, such as aircrafts, can only be operated if regular inspections for faults are carried out. The cost of these inspections can be capitalised. (2018/12)Ex - OverhaulsAn aircraft requires a planned overhaul each year at a cost of $5,000. This is a condition of being allowed to fly.

13、How should the cost of the overhaul be treated in the financial statements?pAccrued for over the year and charged to maintenance expenses pProvided for in advance and charged to maintenance expenses pCapitalised and depreciated over the period to the next overhaul pCharged to profit or loss when the

14、 expenditure takes place2018/12 Q3b) BackgroundAt 30 November 20X6, the directors of Fill estimate that a piece of mining equipment needs to be reconditioned every two years. They estimate that these costs will amount to $2 million for parts and $1 million for the labour cost of their own employees.

15、The directors are proposing to create a provision for the next reconditioning which is due in two years time in 20X8, along with essential maintenance costs. There is no legal obligation to maintain the mining equipment.The directors of Filladvice on how to treat thereconditioning costs 4marksAnswer

16、s b)IAS 16 Property, Plant and Equipment requires an entity to recognise in the carrying amount of PPE, the cost of replacing part of such an item. When each major inspection is performed, its cost is recognised in the carrying amount of the item of PPE as a replacement if the recognition criteria a

17、re satisfied. Any remaining carrying amount of the cost of a previous inspection is derecognised.The costs of performing a major reconditioning are capitalised if it gives access to future economic benefits. Such costs will include the labour and materials costs ($3 million) of performing the recond

18、itioning.However, costs which do not relate to the replacement of components or the installation of new assets, such as routine maintenance costs, should be expensed as incurred.AnswersIt is not acceptable to accrue the costs of reconditioning equipment as there is no legal or apparent constructive

19、obligation to undertake the reconditioning.As set out above, the cost of the reconditioning should be identified as a separate component of the mine asset at initial recognition and depreciated over a period of two years. This will result in the same amount of expense being recognised as the proposa

20、l to create a provisionDerecognitionIAS 16 says that an asset should be derecognised when disposal occurs, or if no further economic benefits are expected from the asset's use or disposalThe gain or loss on derecognition of an asset is the difference between the net disposal proceeds, if any, an

21、d the carrying amount of the itemWhen a revalued asset is disposed of, any revaluation surplusbe transferred directly to retained earnings, or it left in the revaluation surplus within other components of equity.beIAS40 Investment propertyDefinitionIAS 40 Investment Property relates to 'property

22、 (land or buildings) held (by the owner or by the lessee as a right-of-use asset) to earn rentals or for capital appreciation or both (IAS 40, para5)Examples of investment property are:ü land held for capital appreciationü land held forü buildings leased out under an operating lease&#

23、252; vacant buildings leaseunder an operatingThe following areinvestment propelerty:property held for use in the production or supply of goods or services or for administrative purposes (IAS 16)owner-occupied property(IAS 16 applies)property held for sale in the ordinary course of business or in the

24、 process of construction of development for such sale (IAS 2 Inventories applies)property being constructed or developed on behalf of third parties (IFRS 15 Revenue from Contracts with Customers appliesProperty leased to another entity under a finance lease (IFRS 16 Leases applies) 2018/12Recognitio

25、nInvestment property is recognised when it is probable that future economic benefits will flow to the entity and the cost can be measured reliably.Measurement at recognitionCost, including directly attributable expenditure and transaction costs.MeasurementIf the cost mis chosen, investment propertie

26、s are held atcost less accumulated depreciation. No revaluations are permittedUnder the fair value m, the entity remeasures itsinvestment properties to fair value each year. No depreciation is charged. All gains and losses on revaluation are reported in the statement of profit orloss.If, in exceptio

27、nal circumstances, it is impossible to measure the fair value of an individual investment property reliablythen the cost mshould be adopted采用公允價值模式計量的投資性房地產(chǎn)轉(zhuǎn)換為自用房地產(chǎn)/存貨時，應(yīng)當(dāng)以其作為自用房地產(chǎn)的賬面價值，公允價值與原賬面價值的差額計入當(dāng)期損益TransfersTransfers to or from investment property can only be made if there is a change of use.

28、 There are several possible situations in which this might occur and the accounting treatment for each is set out below:Use the fair value at the date of the change for subsequent accounting under IAS16.Use the fair value at the date of the change for subsequent accounting under IAS 2 InventoriesNor

29、mal accounting under IAS 16 (cost less depreciation) will have been applied up to the date of the change. On adopting fair value, there is normally an increase in value. This is recognised as other comprehensive income and credited to the revaluation surplus in equity in accordance with IAS 16. If t

30、he fair valuation causes a decrease in value, then it should be charged to profitsAny change in the carrying amount caused by the transfer should be recognised in profit or lossIAS16&40 practiceMarchant 06/146. On 1 May 2012, Marchant purchased an item of property, plant and equipment for $12 mi

31、llion and this is being depreciated using the straight line basis over 10 years with a zero residual value. At 30 April 2013, the asset was revalued to$13 million but at 30 April 2014, the value of the asset hadfallen to $7 million. Marchant uses the revaluation m value its non-current assets.toThe

32、effect of the revaluation at 30 April 2014 had not been taken into account in total comprehensive income but depreciation for the year had been charged.W6PPE2012/05/0112.00Correct:DrCrDep(1.20)PPE4.562013/04/3010.80OCI2.2OCI2.20PL2.36Revalued amt13.00Dep(1.44)2014/04/3011.56Impairment(4.56)Recoverab

33、le amt7.00Rose 06/11(e) Rose purchased plant for $20 million on 1 May 20X4 with an estimated useful life of six years. Its estimated residual value at that date was $1.4 million. At 1 May 20X7, the estimated residual value changed to $2.6 million.Traveler 12/11(v) Traveler acquired a new factory on

34、1 December 20X0. The cost of the factory was $50 million and it has a residual value of $2 million. The factory has a flat roof, which needs replacing every five years. The cost of the roof was $5 million. The useful economic life of the factory is 25 years. No depreciation has been charged for the

35、year. Traveler wishes to account for the factory and roof as a single asset and depreciate the whole factory over its economic life. Traveler uses straight-line depreciation.Grange 12/09(iv) Grange acquired a plot of land on 1 December 20X8 in an area where the land is expected to rise significantly

36、 in value if plans for regeneration go ahead in the area. The land is currently held at cost of$6 million in property, plant and equipment until Grange decides what should be done with the land. The market value of the land at 30 November 20X9 was $8 million but as at 15 December 20X9, this had redu

37、ced to $7 million as there was some uncertainty surrounding the viability of the regeneration plan.IAS38 Intangible assetsnition Annon-monetary asset without physicalsubstance. Intangible assets include:ü goodwill acquired in a business combinationü computer softwareü Patentsü Co

38、pyrights ü customer list ü Licences üFranchisesücustomer and supplier relationshipsDefiognition criteriaAn entity should criteria are met:p The asset is identifiablean intangible asset if all the followingp The asset is controlled by the entityp The asset will generate future eco

39、nomic benefits for the entityp The cost of the asset can be measured reliablyRecAn intangible asset isif:ü It is separable (capable of being separated and sold, transferred licensed, rented, or exchanged, either individually or as part of a package), orü It arises from contractual or other

40、 legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations (IAS 38, para 12)If an intangible asset does not meet the recognition criteria, expenditure should be charged to the statement of profit or loss as it is incurred. Onc

41、e the expenditure has been so charged, it cannot be capitalised at a later date.Measurement at recognitionWhen an intangible asset is initially recognised, it is measured at cost.Measurement after recognitionCost mCost less accumulated amortisation/impairment lossesRevaluation mTo FV only if active

42、market (IFRS 13):' transactions for the asset take place with sufficient frequency and volume to provide pricing information on an ongoing basis'No active market Revalue whole classcost mRevalue regularly such that BV not materially diff to FVAmortisation/impairment testsFinite useful lifeAm

43、ortise on systematic basis over useful life Begins when available for useResidual value normally assumed = 0Review useful life and method at least each financial year-endIndefinite useful lifeNOT amortisedReview indefinite useful life assessment each period Impairment tests at least annuallyearch an

44、d developmennt expenditureInternally generated intangiblesDevelopment PhaseResearch PhaseCapitalise and amortise if following conditions are met:Recognise as expense when incurredProbable future economic benefits Intention to complete and use/sellResources adequate to complete and use/sell Ability t

45、o use/sellTechnical feasibilityExpenditure can be measured reliablyResatt 12/10(iii) Jocatt purchased a research project from a third party including certain patents on 1 December 20X1 for$8 million and recognised it as an intangible asset. During the year, Jocatt incurred further costs, which inclu

46、ded $2 million on completing the research phase,$4 million in developing the product for sale and $1 million for the initial marketing costs.Jocny 12/12(v) Minny purchased patents of $10 million to use in a project to develop new products on 1 December 20X1. Minny has completed the investigative pha

47、se of the project, incurring an additional cost of $7 million and has determined that the product can be developed profitably. An effective and working prototype was created at a cost of $4 million and in order to put the product into a condition for sale, a further $3 million was spent. Finally, ma

48、rketing costs of $2 million were incurred. All of the above costs are included in the intangible assets of Minny.Min2018/09 Q3Required:(i) Discuss the potential issues which investors may have with:- accounting for the different types of intangible assetacquired in a;- the choice of accounting polic

49、y of cost or revaluationms, allowed under IAS 38 Intangible Assets forintangible assets;- the capitalisation of development expenditure. (7 marks)AnswersUnder IFRS 3 Business Combinations, acquired intangibleassetsbe recognised andat fair value if theyare separable or arise from other contractual ri

50、ghts, irrespective of whether the acquiree had recognised the assets prior to the business combination occurring. This is because there should always be sufficient information to reliably measure the fair value of these assets.IFRS 3 requires all intangible assets acquired in a business combination

51、to be treated in the same way in line with the requirements of IAS 38.IAS 38 requires intangible assets with finite lives to be amortised over their useful lives and intangible assets with indefinite lives to be subject to an annual impairment review in accordance with IAS 36.However, it is unlikely

52、 that all intangible assets acquired in a business combination will be homogeneous and investors may feel that there are different types of intangible assets which may be acquired.For example, amay only last for a finite period oftime and may be thought as having anfuturerevenue stream. In this case

53、, amortisation of the patent would be logical.However, there are other intangible assets which are gradually replaced by the purchasing entitys own intangible assets, for example, customer lists, and it may make sense to account for these assets within goodwill.AnswersIAS 38 requires an entity to ch

54、oose either thefor each class of intangible asset.or theUnder the cost m, after initial recognition intangible assetsshould be carried at cost less accumulated amortisation and impairment losses.Under the revaluation m, intangible assets may be carried at arevalued amount, based on fair value, less any subsequent amortisation and impairment losses only if fair value can be