You may think you already know PPE in IAS 16, but this one still causes problems in SBR when it is tested in an applied way.

In this episode, I take you through IAS 16 Property, Plant and Equipment. We cover the basics of PPE, including initial recognition, depreciation, revaluation, disposal, and why depreciation is about matching costs with benefits — not saving up cash to replace an asset.

You will learn how IAS 16 connects with other important exam areas, including IAS 23 borrowing costs, IAS 37 provisions, IFRS 18 presentation, IAS 7 cash flows, and sustainability reporting. I also work through practical examples on revalued assets, disposal without recycling gains to profit or loss, and decommissioning provisions, so you can see how the numbers work and understand what the examiner is really looking for.

Thanks for listening to this episode of Pass Your SBR ACCA Exams with Tom Clendon.

If you’d like to view the exam question on screen and see my working, subscribe to the YouTube Channel:⁠ ⁠⁠https://www.youtube.com/@tomclendonSBR⁠⁠⁠.

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Chapters

(00:00) Why IAS 16 PPE still matters for SBR

(01:54) What PPE means and when it is recognised

(03:08) Depreciation explained simply

(04:05) The double entry for depreciation

(05:43) Changing depreciation method: policy or estimate?

(06:56) Depreciation and the cash flow statement

(08:30) Why we really charge depreciation

(10:46) Revalued PPE and why depreciation still applies

(12:24) Disposal and derecognition of PPE

(14:43) IAS 23 borrowing costs and PPE

(16:48) Decommissioning provisions and sustainability reporting

(20:36) Worked examples: revaluations, disposals and provisions