Common Errors when Accounting for Property, Plant and Equipment
AASB 116 Property, Plant and Equipment (PPE) sets out the key principles for recognising and measuring PPE.
While PPE may not be a material item on the balance sheet for service entities, it is often a significant item for entities owning land and buildings, those using heavy machinery and equipment such as manufacturers, explorers and construction businesses, those with significant CAPEX such as for store fit-outs, as well as agricultural producers with bearer plants.
Although the requirements of IAS 16 are not particularly complex, there are nevertheless a number of areas where preparers make common errors, and these fall into four main categories:
- Scope – accounting for items as PPE when they are not PPE
- What is ‘cost’?
- The revaluation model
This session will equip you with the knowledge to avoid these.
Webinar Learning Outcomes:
At the end of this webinar, attendees will be able to:
- Explain the recognition of initial and subsequent costs
- Explain the measurement at initial recognition
- Explain the measurement subsequent to initial recognition
- Explain derecognition
- Explain the presentation and disclosure of property, plant and equipment
Preparers and auditors of financial reports.
Aletta Boshoff is an IFRS advisory specialist with over 25 years’ experience in financial reporting and accounting, including IFRS. Aletta prides herself on her technical excellence, approachability, and the ability to solve problems practically. Aletta loves accounting and accounting standards, but she is also of the view that it’s only when you try and apply that knowledge that you are really challenged and that it is only then that you fully appreciate the nuances of IFRS.
In particular, Aletta takes great pride in her ability to apply a wealth of technical expertise to real-world business situations. She works hard to ensure she is working with her clients, involving them at every step of the journey. She helps them to understand how she came to a recommendation, so that they can test any assumptions she has made and together they can come to the best IFRS solution possible.
Your webinar purchase includes:
- the PowerPoint slide deck as a PDF workbook
- any supporting documentation required
- access to stream the Webinar Recording multiple times
- an opportunity to ask questions.