Property, plant and equipment recognition and measurement: choose cost or revaluation model and disclose depreciation policies.

The Standard mandates recognition of property, plant and equipment when future economic benefits are probable and cost is reliably measurable; initial measurement is at cost including purchase price, directly attributable costs and decommissioning obligations. After recognition, an enterprise must apply either the cost model (cost less accumulated depreciation and impairment) or the revaluation model (revalued amount less subsequent depreciation and impairment) to entire classes of assets, depreciate significant parts separately over useful lives, test for impairment under the impairment standard, and derecognise assets on disposal or when no future benefits are expected.

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