PROPERTY, PLANT AND EQUIPMENT (PART 2) Pas Iu SUBSEQVENT MEASUREMENT cone (*) EOF MODEL ———> | original coct x ESCs entire claus accumiated depreciahon (9) of PPE OO fs re xy 7 accumuiated impairment Ince Subsequent meacurement (@ cet) COST MODEL DEPRECIATION — cyctematic allocation of cost over a period Of time (useful life) FACTORS: Celemente) @ — cot we [> (0 outflow Residual value ei inflow DA feat moon 2 Raa we — if Rv>cam acpi Oct (we of 129 ~ 4 entire clacs Of PPE 1 avoid selective revaluation ~ Simutrneous revaluation i not applicable —+ ROLLING BASIS, provided: completed wlin a chort pevied of time (4 yr) EN = mmovement of Fair vane W ignificant ard volatile —* annual © insignificant and Inolotile —» every 3 to £ yearACCOUNTING FoR REVALUATION AT INmmAL RECOGNMON Reained amount: ~ Fait value = Depreciatied Replacement Coc (Cound value) cor * Replacement cot xk ial Joe Aec-Dep _(x¥) Ace. Dep (wo ch x Revalued amount 7 Depreciated Replacement cort / Fair value { Sound value dite Revatuation | oct PROPORTIONAL WerKOD Suvpluc (net of tax) aig 5 ep x [cut il Maer oats initial = same | eummnrion eru0p 4 a recognition recut “Accum Dep. = Ps ‘erica Buiding « i AUBSEQUENT ACCOUNTING Laon Ua teiwras ioe Lab Ga: Revaiwation Garplus —— Retained Earnings —Aser__ I - dices tanter jecemeal ~ o poi v tiersfaed Depreciabie iatogeen, PeLee erent Nondepreciable foresee REVALUATION INCEEACE EVALUATION DECREASE Charged to revaluation curplw, If any © Impaiivment yocs. Gatement of Comprehencive Income Slatement of Financial Position te movement duving the year Le as-0f balance 1D Other Camprehencive Income, © Equity (nel of fax) (net of tox) SVIBCEDUENT COSTS Revenue expand ~ cape ar earred © capital experaiture - cavitatied Cifula: Cost can incase the capacity of aset + Probable <= § inereace efficlency of accet " } amp et + measurable Imprnve Safety on the wie of fre acet i sramples: 8) Additional/ Expancion @) Repair and Inpection a) Betterment / Imprvernent expente, +) Repacement xPv: major /etvaordinary repair + capitalized 8) Reintaliakon GR: expente i XW: it Ht can inereace efFiclenoy of operation 7 cantatred