7 paragraphs found in AD-AASB 116 [6-15]
The AASB noted there are two views in relation to the definition of residual value : · View 1: residual value reflects consideration receivable for an asset that is at the end of its useful life and, accordingly, does not include cost savings …
The AASB noted that some private sector entities may also control infrastructure assets. The AASB observed that View 2 did not appear to be widely applied in practice across sectors or other …
In considering this issue, the AASB noted that the definition of residual value in AASB 116 refers to the estimated amount that an entity would currently obtain from disposal of the asset at the end of its useful life to the entity. The AASB decided …
The AASB observed that AASB 116 requires e ach part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item to be separately depreciated, and that parts of an asset may have a different useful …
The AASB noted that application of View 1 and View 2 could result in differing depreciable amounts for an entity’s asset, and accordingly different annual depreciation expense. The AASB observed that AASB 116 does not allow View 2 to be applied where …
On the basis of the analysis performed and in light of the existing requirements in Australian Accounting Standards, the AASB determined that neither an Interpretation nor an amendment to a Standard was necessary. Consequently, the AASB decided not to …
The AASB received a request to clarify whether residual value, as defined in AASB 116 Property, Plant and Equipment , includes cost savings from the re-use of a part of an asset by the entity. The issue was raised primarily in relation to infrastructure …