Professional Documents
Culture Documents
Valuation
Land and Buildings Plant & Machinery Fixtures, fittings, tools & equipment
gains and losses on revaluation on individual assets in a class of asset should not be aggregated for purposes of deciding whether G/Ls go in STRGL or P&L
FRS 3)
Depreciation
That is the amount of economic benefit consumed The cost to the entity of using the asset to generate its revenues
is
based
on
the
remaining UEL
TFA comprises two or more major components with substantially different UEL, each component should be accounted for separately for depreciation purposes (e.g. land and buildings, buildings and the fittings)
of TFA?
Maintenance or refurbishment is carried out regularly, significantly extending the UEL or maintaining the Residual Value of the asset ASB states that subsequent expenditure that maintains or enhances the previously assessed standard of performance of the asset does not negate the need to charge depreciation
some TFAs may have very long useful economic lives and thus the depreciation charge may be immaterial
No Depreciation is permissable:
has a very long useful life Asset has a high residual value
Disclosures