This document discusses accounting for tangible non-current assets under IAS 16, IAS 23, IAS 20 and IAS 40. It covers measurement of property, plant and equipment at cost or using revaluation model. It discusses capitalization of borrowing costs, treatment of government grants, and classification and measurement of investment properties using cost or fair value model. The document provides accounting policies, requirements and examples for non-current tangible assets in accordance with International Financial Reporting Standards.

1. Reporter: Nozimaxon Abdulxamidova
Tangible non-current
assets
Investitsiya loyihalar tahlili

2. Tangible non - current assets
IAS 16 IAS 23 IAS 20 IAS 40
Property,
plant and
equipment
Borrowing
costs
Government
grants
Investment
properties

3. Property, plant and equipment
Part Ⅰ

4. Measurement at recognition
 At cost :
 Purchase price;
 Directly attributable costs in bringing asset to its
location and condition;
 Costs to dismantling /restore ( present value)
(1+r)^n
1

6. Revaluations
Carried at lost less
accumulated
depreciation and
impairment losses
Cost model
Carried at revalued
amount ( fair value less
accumulated
depreciation and
impairment losses
Revaluation model

7. If the asset is carried under the
revaluation model, the following must be
applied:
Consistent policy for
each class of asset
Depreciate the
revalued asset
less residual
value over its
remaining useful
life
Review
periodically and
keep
revaluations up
to date

8. Depreciation
Depreciable
amount
Straight line
The systematic
allocation of the
depreciable
amount of an asset
over its iuseful life
Reducing
balance
Machine
hours

10. Borrowing costs
Part Ⅱ

11. Borrowing costs
Capitalisation starts
when :
Borrowing costs , net of income
received from the investment of
the money borrowed , on a
qualifying asset must be
capitalised over the period of
construction.
 Expenditure on the asset
commences
 Borrowing costs are being
incurred
 Activities necessary to
prepare the asset are in
progress
Capitalisation of borrowing costs should cease
when either:
 substantially all the activities necessary to
prepare the qualifying asset for its intended
use or sale are complete
 construction is suspended.

13. Government grants
Part Ⅲ

14. Government grants
Revenue
grants
Capital grants
 Treat the grant as a deferred credit and transfer a portion to
revenue each year, so offsetting the higher depreciation charge on
the original cost.
• deducted from the related expense
• presented as a credit in the statement of profit or loss
 Write off the grant against the cost of the non-current
asset and depreciate the reduced cost.

15. Investment property
Part Ⅳ

16. Investment property is land or a building ‘ helding to earentals or
for capital appreciation or both’, rather than for use by the entity or
for sale in the ordinary course of business.
1 2
The investment properties
are held using the
benchmark method in IAS
16;
The properties are
depreciated like any other
asset
 The investment properties
are revalued to fair value at
each reporting date;
 Gains or losses on
revaluations are recognised
directly through profit or loss;
 The propertiesare not
depreciated.
Cost model Fair value model

17. Transfers into and out of investment property
should only be made when supported by a
change of use of the property
1 .IP to owner occupied
(IAS 16) - Fair value at date
of change
2. IP to inventory ( IAS 2) -
Fair value at date of
transfer
3.Owner ocupied ( IAS 16)
to IP - Revalue under IAS
16 and then treat as IP
4.Inventory ( IAS 2) to IP-
Fair value on change and
gain /loss to profit or loss

18. C