IAS 16 Property, Plant and Equipment
IAS 16 sets requirements for recognising, measuring, depreciating and derecognising property, plant and equipment. FA applies its principles to items such as acquisitions, depreciation, revaluation and disposals. A qualifying machine costing 12,000 with zero residual value and a six-year useful life has annual straight-line depreciation of 2,000.
Worked example
A machine meeting recognition criteria is capitalised and depreciated over its useful life.
Common mistake
Expensing every cost of acquiring an eligible machine or depreciating land automatically.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| ACCA | SBR | Direct | Official assessment-window verification pending |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| CIMA | F1 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: IAS 16