One of the main differences between U.S. GAAP and IAS/IFRSis the measurement of property, plant & equipment subsequentto initial recognition. Read IAS 16 and answer the followingquestions. Provide a list of the references you have used tosearch this topic.1) What are the accounting models accepted under IFRS for themeasurement of property, plant & equipment subsequent toinitial recognition?2) How often should the company revalue its property, plant &equipment under the revaluation model?3) How should the revaluation gains and losses be accounted forand reported in the financial statements?4) How should any claim for compensation from third parties forimpairment be accounted for?5) How should the recoverability of the carrying amount ofproperty, plant & equipment be accounted for? 5) How should the recoverability of the carrying amount ofproperty, plant & equipment be accounted for?6) How should any revaluation surplus from a revalued asset betreated if the revalued asset is disposed of?7) What additional disclosures should be made if property, plant& equipment are stated at revalued amounts?8) Explain the effect on the company's financial statements if acompany switches from the historical cost principle to therevaluation model? How should this change be accounted for inthe financial statements?

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Answered: 1) What are the accounting models…

1) What are the accounting models accepted under IFRS for the measurement of property, plant & equipment subsequent to initial recognition?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

One of the main differences between U.S. GAAP and IAS/IFRS
is the measurement of property, plant & equipment subsequent
to initial recognition. Read IAS 16 and answer the following
questions. Provide a list of the references you have used to
search this topic.
1) What are the accounting models accepted under IFRS for the
measurement of property, plant & equipment subsequent to
initial recognition?
2) How often should the company revalue its property, plant &
equipment under the revaluation model?
3) How should the revaluation gains and losses be accounted for
and reported in the financial statements?
4) How should any claim for compensation from third parties for
impairment be accounted for?
5) How should the recoverability of the carrying amount of
property, plant & equipment be accounted for?

5) How should the recoverability of the carrying amount of
property, plant & equipment be accounted for?
6) How should any revaluation surplus from a revalued asset be
treated if the revalued asset is disposed of?
7) What additional disclosures should be made if property, plant
& equipment are stated at revalued amounts?
8) Explain the effect on the company's financial statements if a
company switches from the historical cost principle to the
revaluation model? How should this change be accounted for in
the financial statements?

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