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17.1 Scope

17.2 Recognition

17.2.2 Omnipro Comment

17.2.2.1 Spare parts

17.2.2.2 Replacement of a major components and periodic replacement

17.2.2.3 Separation of land and buildings

17.2.3 Measurement at initial recognition

17.2.3.1 Extract from FRS 102 – Section 17.9-17.13

17.2.3.2 Omnipro Comment

17.2.3.3 Directly attributable costs

17.2.3.4 Not directly attributable costs

17.2.3.5 Decommissioning costs

17.2.3.6 Self-constructed assets

17.2.3.7 Cessation of capitalisation

17.2.3.8 Computer software

17.2.3.9 Deferred payment terms – measurement of cost

17.2.4 Exchange of assets

17.2.4.1 Extract from FRS 102 – Section 17.14

17.2.4.2 OmniPro comment

17.2.5 Measurement after Initial Recognition

17.2.5.1 Extract from FRC – FRS 102 – Section 17.15-17.15F

17.2.5.2 OmniPro comment

17.2.5.2.1 Cost model

17.2.5.2.2 Revaluation model

17.2.5.2.2.1 Frequency of revaluations

17.2.5.2.2.2 Meaning of fair value

17.2.5.2.2.3 Accounting for revaluation surpluses/deficits

17.2.5.2.2.4 Treatment of depreciation on upward revaluations

17.2.6 Depreciation, residual value and useful lives

17.2.6.0 Extract from FRS 102 Sections 17.16 to 17.23

17.2.6.1 OmniPro comment

17.2.6.1.2 Depreciation and useful economic life

17.2.6.1.3 Residual value

17.2.6.1.4 Change in residual value, depreciation rate or useful economic life – change in estimate

17.2.6.1.5 Non-depreciable assets

17.2.6.1.6 Commencement and cessation of depreciation

17.2.6.1.7 Depreciation methods

17.2.6.1.5.1: Straight line method

17.2.6.1.5.2: Diminishing balance method/sum of digits

17.2.6.1.5.3: Units of production method

17.2.7 Recognition and measurement of impairment.

17.2.7.1 Extract from FRS 102 Section 17.24-17.26

17.2.7.2 OmniPro comment

17.2.8 Derecognition

17.2.8.1 Extract from FRS 102 Section 17.27-17.30

17.2.8.2 Omnipro Comment

17.2.9 Disclosures

17.2.9.0 Extract from FRS 102 – Section 17.31-17.32A

17.2.9.1 OmniPro comment

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17.1 Scope

Section 17; property, plant and equipment does not apply to:

(a) biological assets related to agricultural activity (see Section 34 Specialised Activities) or heritage assets (see Section 34); or

(b) mineral rights and mineral reserves, such as oil, natural gas and similar non-regenerative resources (see Section 34) (Section 17.3).

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Examples

Example 1: Spare parts

Example 2: Replacement of a major component which was previously not separated

Example 3: Periodic replacement

Example 4: Separation of land and buildings

Example 5: Employee costs during construction

Example 5A: Decommissioning

Example 6: purchasing on deferred credit terms

Example 7: Exchange of assets- assets that lack commercial substance

Example 8: Revaluation of assets of the same class

Example 9: Accounting for revaluations and subsequent movements – depreciable assets

Example 10: Accounting for initial and subsequent revaluations on non-depreciable assets – i.e. on land

Example 11: Transfer of depreciation on revalued amount from profit and loss reserves

Example 12: Revising a residual value of an asset

Example 13: Change in accounting policy disclosure

Example 14: Commencement of depreciation

Example 15: Depreciation on basis of units of production

Example 16: Derecognition

Example 17: Extract from notes to the financial statements (assuming revaluation upwards)

Example 18: Extract of an accounting policy for an entity that adopts fair value/or [revious revaluation at deemed cost and the cost model adopted

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