IAS 16Chapter 1Lesson 1
Objective and scope of IAS 16
Step 1 of 9Learning objectives
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What IAS 16 sets out to settle, which assets it applies to and which it leaves to other standards: assets held for sale, agricultural biological assets, exploration assets, mineral rights. With two special cases: bearer plants, which fall within IAS 16, and investment property measured at cost.
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Learning objectives
- Explain the objective of IAS 16 and the four accounting questions it deals with.
- Determine whether a tangible asset falls within IAS 16 or another standard, identifying the standard that applies to each exclusion.
- Distinguish a bearer plant, accounted for under IAS 16, from the agricultural produce growing on it.
- Identify when the IAS 16 cost model applies to investment property, and the effect of classifying an asset as held for sale.