IAS 16 Property, Plant and Equipment

（Edited by freelance Chinese translator li – English to Chinese translation or Chinese to English translation services- financial translation）

IAS 16 Property, Plant and Equipment（财产、厂房和设备）

The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entity’s investment in its property, plant and equipment and the changes in such investment. The principal issues in accounting for property, plant and equipment are the recognition of the assets, the determination of their carrying amounts and the depreciation charges（折旧费） and impairment losses（减值） to be recognised in relation to them.

Property, plant and equipment are tangible items that:
(a) are held for use in the production or supply of goods or services, for rental（出租） to others, or for administrative purposes; and

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


The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if:
(a) it is probable that future economic benefits associated with the item will flow to the entity; and

(b) the cost of the item can be measured reliably.

Measurement at recognition: An item of property, plant and equipment that qualifies for recognition as an asset shall be measured at its cost. The cost of an item of property, plant and equipment is the cash price equivalent at the recognition date. If payment is deferred beyond normal credit terms, the difference between the cash price equivalent and the total payment is recognised as interest over the period of credit unless such interest is recognised in the carrying amount of the item in accordance with the allowed alternative treatment in IAS 23.

The cost of an item of property, plant and equipment comprises:
(a) its purchase price（购置价格；购买价格）, including import duties（进口税） and non-refundable purchase taxes（购买税；零售税）, after deducting trade discounts（折扣） and rebates（折价）.

(b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

(c) the initial estimate of the costs of dismantling（拆卸） and removing（转移） the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.

Measurement after recognition: An entity shall choose either the cost model（成本模型） or the revaluation model（重估模型） as its accounting policy and shall apply that policy to an entire class of property, plant and equipment.

Cost model: After recognition as an asset, an item of property, plant and equipment shall be carried at its cost less（扣减） any accumulated depreciation and any accumulated impairment losses（毁损）.

Revaluation model: After recognition as an asset, an item of property, plant and equipment whose fair value can be measured reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations shall be made with sufficient regularity（规则） to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.

If an asset’s carrying amount is increased as a result of a revaluation, the increase shall be credited directly to equity under the heading of revaluation surplus（资产重估盈余）. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss. If an asset’s carrying amount is decreased as a result of a revaluation, the decrease shall be recognised in profit or loss. However, the decrease shall be debited（记入借方） directly to equity under the heading of revaluation surplus to the extent of any credit balance（贷方余额） existing in the revaluation surplus in respect of that asset.

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value（残值；剩余价值）. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item shall be depreciated separately. The depreciation charge for each period shall be recognised in profit or loss unless it is included in the carrying amount of another asset. The depreciation method used shall reflect the pattern in which the asset’s future economic benefits are expected to be consumed by the entity.

The residual value of an asset is the estimated amount that an entity would currently obtain from disposal of the asset（资产处置）, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

To determine whether an item of property, plant and equipment is impaired, an entity applies IAS 36 Impairment of Assets.

The carrying amount of an item of property, plant and equipment shall be derecognised（注销）:

(a) on disposal; or

(b) when no future economic benefits are expected from its use or disposal.