Risk mapping and Useful life: Difference between pages
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imported>Doug Williamson (Align with qualifications material.) |
(Add quote from IAS 16 - https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards/english/2022/issued/part-a/ias-16-property-plant-and-equipment.pdf?bypass=on) |
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The | ''Accounting''. | ||
The length of time an asset is in use. | |||
The asset should be depreciated over its useful life. | |||
:<span style="color:#4B0082">'''''Estimation of useful life for IAS 16 financial reporting is a matter of judgement'''''</span> | |||
:"The useful life of an asset is defined in terms of the asset’s expected utility to the entity. | |||
:The asset management policy of the entity may involve the disposal of assets after a specified time or after consumption of a specified proportion of the future economic benefits embodied in the asset. | |||
:Therefore, the useful life of an asset may be shorter than its economic life. | |||
:The estimation of the useful life of the asset is a matter of judgement based on the experience of the entity with similar assets." | |||
:''IAS 16 - Property, plant and equipment - paragraph 57.'' | |||
== See also == | == See also == | ||
* [[ | * [[Accounting]] | ||
* [[Asset management]] | |||
* [[Depreciating asset]] | |||
* [[Depreciation]] | |||
* [[Economic life]] | |||
* [[Financial reporting]] | |||
* [[IAS 16]] | |||
* [[Judgement]] | |||
* [[Life]] | |||
* [[Property, plant and equipment]] | |||
* [[Reporting entity]] | |||
* [[Short life asset]] | |||
* [[Useful economic life]] | |||
* [[Utility]] | |||
==Other resource== | |||
*[https://www.ifrs.org/content/dam/ifrs/publications/pdf-standards/english/2022/issued/part-a/ias-16-property-plant-and-equipment.pdf?bypass=on IAS 16 text]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
Revision as of 21:12, 29 October 2023
Accounting.
The length of time an asset is in use.
The asset should be depreciated over its useful life.
- Estimation of useful life for IAS 16 financial reporting is a matter of judgement
- "The useful life of an asset is defined in terms of the asset’s expected utility to the entity.
- The asset management policy of the entity may involve the disposal of assets after a specified time or after consumption of a specified proportion of the future economic benefits embodied in the asset.
- Therefore, the useful life of an asset may be shorter than its economic life.
- The estimation of the useful life of the asset is a matter of judgement based on the experience of the entity with similar assets."
- IAS 16 - Property, plant and equipment - paragraph 57.
See also
- Accounting
- Asset management
- Depreciating asset
- Depreciation
- Economic life
- Financial reporting
- IAS 16
- Judgement
- Life
- Property, plant and equipment
- Reporting entity
- Short life asset
- Useful economic life
- Utility
