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Syllabus B2. Property, plant and equipment

Syllabus B2

Property, plant and equipment 2 / 19

• Define the initial cost of a non-current asset (including a self-constructed asset) and apply this to various examples of expenditure, distinguishing between capital and revenue items.
• Identify pre-conditions for the capitalisation of borrowing costs.
• Describe, and be able to identify, subsequent expenditures that should be capitalised, including appropriate borrowing costs.
• Compute the impact on the financial statements when property, plant and equipment is measured under revaluation
model and a revaluation to fair value is made 
• Account for gains and losses on the disposal of re-valued assets.
• Calculate depreciation on:
– revalued assets, and
– assets that have two or more major items or significant components.
• Describe the criteria that need to be present before non-current assets are classified as held for sale, either individually or in a disposal group.
• Apply the requirements of International Financial Reporting Standards for non-current assets and disposal. groups that are held for sale.