- The amount at which an asset is recognised after deducting any accumulated depreciation and accumulated impairment losses.
|Class of property, plant and equipment|
- A grouping of assets of a similar nature and use, e.g. land, land and buildings, machinery, ships, aircraft, motor vehicles, furniture and fixtures, and office equipment.
- Extent to which future cash flows are expected to change as a result of the transaction.
- There are three sources for the cost of property, plant and equipment:
- amount of cash, or cash equivalents paid, or the fair value of the other consideration given, to acquire an asset at the time of its acquisition or construction
- amount attributed to that asset when initially recognised under AASB 116 Property, Plant and Equipment
- amount attributed to that asset when initially recognised under other AASB, e.g. AASB 2 Share-based Payment.
- An item of property, plant and equipment is carried at its cost less any accumulated depreciation and any accumulated impairment losses.
- The cost of an asset, or other amount substituted for cost, less its residual value.
|Depreciated replacement cost|
- The current replacement cost of an asset less accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset.
- The systematic allocation of the depreciable amount of an asset over its useful life.
- Those methods used to allocate the depreciable amount of an asset on a systematic basis over its useful life. These methods include:
- straight-line depreciation that results in a constant charge over the useful life where the residual value of the asset does not change
- diminishing balance method results in a decreasing charge over the useful life
- units of production method results in a charge based on the expected use or output.
- The present value of the cash flows expected from the continuing use of an asset, and from its disposal at the end of its useful life or expected to incur when settling a liability.
- Price received by sale of an asset or payment to transfer a liability in an orderly transaction between market participants at the measurement date.
- The amount by which the carrying amount of an asset exceeds its recoverable amount.
- One whose principal objective is not the generation of profit (a single entity or a group of entities comprising the parent and each of the entities that it controls).
|Property, plant and equipment|
- Tangible items that are:
- held for use in the production or supply of goods or services, for rental to others, or for administrative purposes
- expected to be used during more than one period.
- The term ‘tangible’ is not defined in AASB 116 (2015d), however, AASB 138 (2015b) Intangible Assets defines an intangible asset as an identifiable non-monetary asset without physical substance.
- The higher of the net selling price of an asset and its value in use.
|Repairs and maintenance|
- Costs of day-to-day servicing of property, plant and equipment that are primarily labour and consumables, and may include the cost of small parts.
- Estimated amount that an entity would currently obtain from disposal of the asset, 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.
- An item of property, plant and equipment whose fair value can be measured reliably, is carried at a revalued amount (i.e. its fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses).
- Useful life is considered in the context of time or service:
- Period over which an asset is expected to be available for use by the entity, or
- Number of production or similar units expected to be obtained from the asset by an entity.