Accountancy/Depreciation/Property, plant, and equipment

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IFRS system definition:

According to paragraph 6 of IAS 16: Prpety plant and equipment are tangible items that:

a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and
b) are expected to be used during more than one period.
Associate cost
paragraph 17

Allocation the cost based on fair values, for example. A acquire furniture and buildings for 15000 and 90000, while the total cost are 90000 in actual. Allocate to each asset

furniture 15000/105000*90000
land 90000/105000*90000

The cost model[edit | edit source]

tge depreciation methods : straight-line