South Africa IAS 16 (PPE)

[Nicolette]

I'm doing a thesis on IAS 16 (Property, Plant & Equipment) and looking for international views (positive and negative) around this accounting standard.
What's the strengths & weaknesses on the standard from your country's point of view?

 

[Raju S Narayanan]

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[Charmaine Urwin]

I'm doing a thesis on IAS 16 (Property, Plant & Equipment) and looking for international views (positive and negative) around this accounting standard.
What's the strengths & weaknesses on the standard from your country's point of view?

Nicolette, i am doing the same thesis, and struggling a great deal .... are you able to point me in some kind of direction ....... i am starting to panic a bit

 

[Fidget]

I haven't got any from a "country" point of view, but it is an incredibly vast standard.

If you take that financial statements are drawn up under the historical cost convention - ie PPE is measured at cost and so that's that initially. But - and this will be really important in your thesis - IAS1: Presentation of financial statements says otherwise. It says that it's all about the end users' understanding of the financial position of an organisation... so... cost can be misleading where assets can quite radically fluctuate in value, therefore revaluation under IAS 16 is maybe the way to go.. But... that's expensive, has quite a few rules regarding it and, getting back to IAS1 - nobody has to do it, so makes comparison more difficult (IAS1, again) between those that do and don't.

IAS17 has been replaced to stop off balance sheet financing where leasing is concerned. IFRS17 it is.

And to add to the mix IFRS13 on Fair Values, and you can really go to town on your thesis.

(all roads lead back to IAS1 by the way, so get to know it well )

 

[Jadams]

Nicolette, i am doing the same thesis, and struggling a great deal .... are you able to point me in some kind of direction ....... i am starting to panic a bit

Hi, did you make any progress yet? I am in the same boat