IAS 16 - Property, Plant and Equipment

What is the journal entry for annual depreciation expense of property, plant and equipment (PPE) under cost model in line with IAS 16?

Cost of property, plant and equipment (IAS 16) is calculated as:

An airline acquired a new piece of aircraft for total cost of € 500 000. The estimated useful life is 20 years. Every 5 years, the aircraft needs major inspection in total cost of € 15 000 and replacement of carpets in total cost of € 500. How shall the airline recognize subsequent costs after 5 years?

A company acquired a machine for a purchase price of € 100 000 and puts it in the testing operation. The company paid € 1 000 to an external specialist who runs all the tests. During testing operation, a machine produced 300 pieces of products that were sold for € 0.50 per piece. What is the total cost of machine in line with IAS 16?

A company finds out that lots of its property, plant and equipment (PPE) is still in use, but fully depreciated. The company uses cost model in line with IAS 16 and the carrying amount of these assets is 0. What does it indicate?

A company acquired a machine and incurred the following expenses: 

• Purchase cost of € 100 000, 

• Transport and installation cost of € 2 500, 

• Cost of employees’ training to use the machine of € 2 000, 

• Stamp duty related to the import of the machine: € 4 000.

What is the cost of machine in line with IAS 16?

Under the revaluation model allowed by IAS 16, a property, plant and equipment shall be subsequently carried at its:

Servicing equipment and servicing parts are usually carried in the statement of financial position as: