IAS 16 - Property, Plant and Equipment

IAS 16 covers the recognition, measurement, depreciation and derecognition of tangible fixed assets used in production or supply of goods and services. It allows cost model or revaluation model.

IAS 16 covers recognition and subsequent measurement of property, plant and equipment, including depreciation, component accounting, derecognition, and choice between cost and revaluation models.

- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.

- Example: When preparing year-end reporting, management applies **IAS 16 - Property, Plant and Equipment** to determine the correct IFRS treatment and disclosures.

- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.