Individual Report
IAS 16 Property, Plant and Equipment outlines the accounting treatment for most types of property, plant and equipment. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated so that its depreciable amount is allocated on a systematic basis over its useful life.
IAS 16 was reissued in December 2003 and applies to annual periods beginning on or after 1 January 2005.
"IAS 16- Property, Plant and Equipment " Iasplus.com. N.p., 2016. Web. 18 Sept. 2016.
Required:
Part A:
Study IAS 16 Property, Plant and Equipment and write a report covering following -
1. Objective and recognition criteria of IAS 16
2. Allowable models for measurement after initial recognition
3. Characteristics of depreciation
4. Need for depreciation
5. Basic factors considered for determination of method of depreciation.
6. The impact on the financial statements if a company changes from a current method of depreciation to a new method (Illustrate with a numerical example)
Part B:
Study the financial statements of various companies listed on the Muscat Securities Market and select four listed companies. Two companies must be from the industrial sector and other two could be from the financial sector or from the services sector. However, each company must be from a different sub sector e.g. In the industrial sector, if you choose one construction company then your second company cannot be another construction company but could be a food or textile business. For your chosen companies, study the notes to Accounts and specifically the schedule of noncurrent assets. Analyse and comment on the following
1. Appropriateness of method of depreciation chosen.
2. Rates at which depreciation is charged for various classes of assets along with calculations for estimated useful life.
3. Brief discussion on the model chosen for NCA i.e. Cost or revaluation
4. Analyse the schedule of noncurrent assets and discuss in detail aspects such as the different classes of assets, their original cost, disposals, and additions as well as current and accumulated depreciation and net book value of various classes of assets.
5. Comment on the nature of Noncurrent assets of the companies from different subsectors and the proportion of noncurrent assets to the total assets of the organisation with a supporting rationale.
INSTRUCTIONS
1. This is an individual report.
2. The assignment MUST be submitted on-line.
3. Your assignment shall reflect the depth and breadth of your original analyses in a clear and coherent manner.
4. Any reference to authors and other writers shall be quoted with due acknowledgement in your assignment report using the Harvard Referencing System. For details of Harvard referencing style refer the student's hand book 7.2 of section VII, page 16.
5. This is an individual assignment and carries a 50% weighting of the module grade.
6. This assignment follows a report format and must be original and creative. An analytical piece of work is required. The use of ‘cut and paste' approach will be penalized. It must be presented in a structured manner, with appropriate cover page, content page, introduction, body (with appropriate heading / sub-headings), conclusion, references, page numbered and any required appendices.
7. Your report should be word processed and professionally presented. The length of your report should not exceed 2000 words (+/- 10%), presented in text of font size 12 with 1.5 line spacing. Please state the exact word count at the end of the assignment.
8. The cover page should be attached with the assignment and uploaded through MOVE (on-line. Name of the student, The Programme, Module Title, Assignment Title and number of words must be reflected on the cover sheet.
9. All assignments must be adhered strictly to the deadlines specified by Majan College. Failure to hand in the assignment for any reason and without prior approval and a valid written extension from the module tutor will not be marked and will be awarded a grade G (0) irrespective of the quality of the work. See students' handbook. 4.4 of section IV, page 41.