In this course we discuss the accounting for non-current assets in the context of both IAS 16 and 40. The basic tenets of the two accounting standards would be explored including an understanding of the definition of Property, Plant and Equipment (PPE), and Investment Property (IP) by delineating their characteristics in the eyes of an accountant. The account for the acquisition, maintenance and disposal or transfer of NCA under the two accounting standards would be extensively considered both with an accounting examination and corporate focus. Two somehow similar but different concepts of revaluation and fair valuation would also be considered to dissect the differences which exist between the two confusing accounting standards.

We consider the disclosure requirements of the two standards to ensure a solid understanding is gained about the accounting issues linked to the standards.

Course Key Concepts: IAS 16, IAS 40, Depreciation, Impairment, Revaluation.

Learning Objectives
  • Explore the objectives and scopes (i.e., focus) of IAS 16 and IAS 40.
  • Identify and explain Property, Plant and Equipment (PPE), and Investment Property (IP).
  • Discover the account for the acquisition, maintenance and disposal or transfer of NCA under the two accounting standards.
  • Recognize the difference between revalued amount and fair value.
  • Identify and compare and contrast IAS 16 and IAS 40.
  • Recognize and understand the disclosure requirements of the two standards.
Last updated/reviewed: August 23, 2023
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1 Review (4 ratings)

Reviews

5
Anonymous Author
Really enjoyed this course and the accompanying examples. It helped bring the material to life. Definitely recommend.
Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course. However, to benefit more from this course, it is recommended to take Presentation of Financial Statements in terms of IAS 1 - SFP, SPL and SOCIE
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Course Objectives1:54
  IAS 16 Focus Area9:28
  What is PPE?7:52
  Measurement at Initial Recognition8:38
  Revaluation Workings24:32
  Depreciation Concept with Working16:26
  Another Example13:31
  Derecognition of NCA8:50
  IAS 40 and Differences between Revalued amounts and Fair Value8:01
  Example for Investment Property and Change of Use10:38
  Differences between IAS 16 and IAS 40 with IAS 40 Disclosures5:28
CONTINUOUS PLAY
  Accounting for Non-Current Assets in the Context of both IAS 16 and 401:55:18
SUPPORTING MATERIAL
  Slides: Accounting for Non-Current Assets in the Context of both IAS 16 and 40PDF
  Accounting for Non-Current Assets in the Context of both IAS 16 and 40 Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam