3. IAS 16 Property, Plant & Equipment 

1. Recognition and Measurement

1-3 Measurement at Recognition [O]

1-5 Q&A Exchange Scenarios [R]

2. Depreciation

2-1 Depreciation Overview [O]

YouTube Video (26 minutes)

Notes PDF - FL108

Query: sir major spare parts ki depreciation ho gi?

Response: If they are available for use, then yes. If they are not in a condition or location as being available for use, then not.

2-2 Q&A Delta (ICAP Spring 2016) [O]

YouTube Video (14 minutes)

Notes PDF - FA169

Query: sir what is settlement discount?

Response: Prompt payment discounts (also known as settlement or cash discounts) are offered to credit customers to encourage prompt payment of their account. Our benefit = getting cash earlier to use in our business. Customer's benefit = have to pay less due to this discount.

Query: settlement disc net amount pe q lia?

Response: In the absence of specific information, it is usual assumption that settlement discount% relates to amount payable/receivable.

3. Derecognition

3-1 Derecognition with examples [I]

3-2 Q&A Akmal Brothers (ICAP Autumn 2018) [R]

4. Measurement after recognition

4-2 Revaluation Accounting [I]

4-3 Realisation of Revaluation Surplus [I]

YouTube Video (19 minutes)

Notes PDF - FL007

Query: Sir 1 bat confuse kr ri hai

Agr date year end ka given h to ham pehly us par hamesha dep charg krngy old data ko use kr k and then revelation krngy and revaluation k bad is sal koi dep ni charge krngy and na e koi surplus transfer krngy Jo is s sal aya h revaluation par , right?

Agr m question samjhaany m nakaam raha to kindly ap question m sequence of steps bta dain k Konsa Kam krna h given data waly sal k end m

Response: Yes your understanding about year-end revaluation is correct i.e.

1. Depreciation (on pre-revaluation amount)

2. Revaluation

3. No incremental depreciation

In case of revaluation at year-start:

1. Revaluation

2. Depreciation (on revalued amount)

3. Incremental depreciation (in case of surplus)

4-5 Q&A Shahzad Textile Mills Limited (ICAP Autumn 2014) [X]

5. Disclosure

5-2 Q&A Abid Limited (ICAP Spring 2016) [O]

6. Comprehensive Examples

6-1 Q&A Rose Enterprises (ICAP Spring 2018) [O]

6-2 Q&A Exchange (ICAP Spring 2018) [I]

6-3 Q&A Kamran Enterprises (ICAP Autumn 2016) [R]

6-4 Q&A Alpha Enterprises (ICAP Autumn 2019) [I]

6-5 Q&A SK Limited (ICAP Spring 2018) [O]

6-6 Q&A Omega Chemicals Limited (ICAP Spring 2015) [R]

6-7 Q&A PQR Enterprises (ICAP Autumn 2015) [R]

6-8 Q&A Piano Limited (ICAP Spring 2019) [I]

6-9 Sputnik Sea Limited (ICAP Spring 2021) [I]

YouTube Video (24 minutes)

Notes PDF - FA160

Query: Sir 2018 me body or Dry docking srif 9 months use hoi hay tu body ki life 25 thi ab remaining kife 24 year and 3 months hena ?

Response: Yes. However, if you intend to use "remaining useful life" for depreciation, also use "remaining carrying amount" for proper comparison. This calculation based on "Original depreciable amount" and "original useful life" is also correct here.

6-11 Q&A Sherdil Limited (ICAP Autumn 2017) [R]

6-12 Q&A Tsuki Limited (ICAP Spring 2022) [R]

6-13 Q&A Harappa Industries Limited (ICAP Autumn 2020) [I]

YouTube Video (23 minutes)

Notes PDF - FA046

Query: sir question me government grant k 2-treatment btae gae hain lekin amount to ak hai  then how we can deduct and also use this for r/f repayment

Response: Actual to be recorded: When grant was received (debit Bank credit Grant or Asset). According to IAS 23 para 18 "Expenditures are reduced by any progress payments received and grants received in connection with the asset". So expenditure used from running finance will be reduced by grant amount (not necessarily actually repaid the running finance, but if repaid entry will be (debit RF credit Bank).

Query: sir cost model me carrying amount find krte hve sirf 2020 ka r/s consider kia hai lekin revaluation to pehle b hvi then one year k difference ko le kr kese find hoi carrying value

Response: The closing balance of Revaluation Surplus does not represent one year or more years calculation. It just reflects the balance on year-end. The difference between carrying amount under cost model (on a specific date) and carrying amount under revaluation model (on same specific date) is revaluation surplus balance (on specific same date).

7. Objective Based Q&A

8. Extra Q&A

8-1 Q&A Adjustment Limited [X]

8-8 Q&A Carly [X]

YouTube Video (11 minutes)

Notes PDF - FA021

Query: sir. Aap ne depreciation main percentages kesay determine ki hain? Matlab W1 main 2% kahan se aaya hai aur W2 main 25% ?


For W1, straight line method is mentioned in question and life of 50 years is given. So, 100% / 50 years = 2% per year.

For W2, 25% reducing balance method is clearly mentioned in the question.

8-10 Q&A Theory (ICAP Spring 2017) [X]