ICAI Educational Material on Ind-AS 16 Property, Plant and Equipment and FAQ
ICAI Educational Material on Ind-AS 16 Property, Plant and Equipment
Ind AS Implementation Committee of the Institute of Chartered Accountants of India (ICAI) has brought out an Educational Material on Indian Accounting Standard (Ind AS) 16, Property, Plant and Equipment. This Standard brings out many new recognition and measurements concepts like component accounting, capitalisation of expenditure based on assessment of probability of future economic benefits associated with the item and not necessarily based on criteria of ownership, initial measurement to include asset dismantlement, removal and restoration costs, recognition of enabling assets such as safety and environment and major inspection costs as PPE, depreciation charge based on revalued amount under revaluation model.
The objective of Ind AS 16 is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entity’s investment in its property, plant and equipment and the changes in such investment.
This Educational Material contains the following:
(a) Summary of Ind AS 16
(b) Frequently Asked Questions (FAQs)
(c) Appendix I – Differences between Ind AS 16, Property, Plant and Equipment and AS 10, Property, Plant and Equipment