logicpolt.blogg.se - Accounting for plant property and equipment

(22) The University enters into PPP with the private sector in relation to the construction and operation of new student accommodation. (21) Depreciation on student accommodation is calculated using the straight line method to allocate their costs or revalued amounts, net of their residual values, over their estimated useful lives of 40 years. (20) Depreciation on buildings is calculated using the straight line method to allocate each building component’s cost or revalued amounts, net of their residual values, over their estimated useful lives, as follows: Asset Class

(19) When an item of building or student accommodation is revalued, any accumulated depreciation at the date of the revaluation is restated proportionately with the change in the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals its revalued amount. (18) Revaluations are carried out annually to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the reporting date. (17) After initial recognition as assets, buildings and student accommodation are carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation and impairment losses. (16) Where an item of building and student accommodation is acquired for no cost, or for a nominal cost, the cost recorded reflects the fair value as at the date of acquisition.

the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

directly attributable costs of bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and.

the purchase price including import duties and non-refundable purchase taxes less any trade discounts and rebates.

(15) The cost of buildings and student accommodation comprises: (14) Buildings and student accommodation that qualify for recognition as an asset are initially measured at cost. Buildings and Student Accommodation Initial Recognition (13) Land, works of art and rare books are not depreciated due to their estimated unlimited useful life. (12) Revaluations are carried out annually to ensure that the carrying amount does not differ materially from the revalued amount. The revalued amounts are their fair values based on valuations performed by a qualified valuer. (11) After initial recognition, these assets are measured at their revalued amounts. (10) Where an asset is acquired for no cost, or for a nominal cost, the cost recorded reflects the fair value as at the date of acquisition. (9) Land and buildings are accounted for separately, even when they are acquired together. The cost of acquisition includes both the purchase price and other directly attributable costs. (8) Land, works of art and rare books that qualify for recognition as an asset are measured at cost on acquisition.

Land, Works of Art and Rare Books Initial Recognition These costs are recognised in the income statement as incurred. (7) The University does not recognise in the carrying amount of property, plant and equipment the costs of the day-to-day servicing of the item. In practice, this often occurs when the asset is delivered. (6) Sufficient certainty that future economic benefits will flow to the University is normally achieved only when the risks and rewards of the asset have passed on to the University. the cost of the item can be measured reliably.it is probable that future economic benefits associated with the item will flow to the University and.(5) The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if: Top of Page Section 4 - Procedure Recognition Criteria (4) Refer to the Accounting (Financial) Policy. (3) Refer to the Accounting (Financial) Policy. (2) This Procedure does not apply to property, plant and equipment classified as held for sale in accordance with the Non-current Assets Held for Sale and Discontinued Operations Policy. (1) This Procedure is applied in accounting for property, plant and equipment including the following categories: You can provide feedback on this policy to the document author - refer to the Status and Details on the document's navigation bar. This is the current version of this document.