IAS 16

Overview and ScopeInternational Accounting Standard 16: Property, Plant and Equipment (IAS 16) is an international financial reporting standard adopted by the International Accounting Standards Board (IASB). It outlines the accounting treatment for property, plant and equipment (PPE), including their recognition, the determination of their carrying amounts, and the associated depreciation charges and impairment losses. The standard defines PPE as tangible items held for use in production, supply of goods, rental to others, or for administrative purposes, which are expected to be used during more than one period. IAS 16 does not apply to assets classified as held for sale under IFRS 5, biological assets related to agricultural activity under , or mineral rights and reserves. Recognition and Initial MeasurementAn item of PPE shall be recognized as an asset if it is probable that future economic benefits associated with the item will flow to the entity. Additionally, the cost of the item must be capable of being measured reliably for recognition to occur. Items of PPE are initially measured at their cost. This cost includes the purchase price, any costs directly attributable to bringi