Objective of the standard

Learning objectives

• Explain the objective of IAS 16 and the accounting issues it addresses (recognition, cost, depreciation, impairment).L1

Normative references

• IAS 16 §1Objective: to prescribe the accounting treatment for property, plant and equipment so that users can understand the entity's investment and the changes in it; principal issues: recognition, carrying amount, depreciation charges and impairment losses.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• True or false? IAS 16 sets out, among other things, when an item of property, plant and equipment is recognised, what carrying amount it is given and which depreciation charges and impairment losses are recognised.L1