Accountancy/Depreciation/Property, plant, and equipment

IFRS system definition:

According to paragraph 6 of IAS 16: Prpety plant and equipment are tangible items that:

a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and

b) are expected to be used during more than one period.

Associate cost

paragraph 17

Inclusion:

Exclusion:

Allocation the cost based on fair values, for example. A acquire furniture and buildings for 15000 and 90000, while the total cost are 90000 in actual. Allocate to each asset

furniture 15000/105000*90000

land 90000/105000*90000

The cost model

tge depreciation methods : straight-line