Ind AS - 016 - Property, Plant and Equipment

Property, Plant and Equipment: recognition, measurement choice of cost or revaluation and required depreciation and disclosure rules.

Ind AS 16 sets out recognition, initial measurement at cost, and subsequent measurement of Property, Plant and Equipment using either the cost model (cost less accumulated depreciation and impairment) or the revaluation model (revalued amount less subsequent depreciation and impairment) applied by asset class. It prescribes elements of cost, capitalisation criteria for replacements and major inspections, depreciation of significant parts over useful lives using methods reflecting consumption patterns, impairment assessment under Ind AS 36, derecognition on disposal or when no future benefits remain, and detailed class-level disclosure requirements. Appendices address decommissioning liabilities and production-phase stripping costs.