23 paragraphs found in INT 1055
Roads are major infrastructure assets for some entities. Road assets comprise a number of components, such as formation or earthworks, drainage, and the road pavement and seal. Earthworks are carried out to prepare the land for the construction of …
Accounting Standard AASB 116 Property, Plant and Equipment requires the depreciable amount of an asset to be allocated on a systematic basis over the asset’s useful life. The Standard presumes that, with the exception generally of land, a characteristic …
There are different views concerning whether the earthworks component of road assets should be depreciated, with some entities taking the view that it is not feasible to reliably estimate a useful life for earthworks, and other entities determining …
The issues are whether particular road earthworks may be assessed as not having a limited useful life, similar to land, and therefore not subject to depreciation, and whether it is possible to reliably estimate a useful life over which particular road …
Road earthworks shall be recognised as assets only in accordance with the requirements for the recognition of an item of property, plant and equipment in AASB 116 …
The depreciable amount of road earthwork assets that have limited useful lives shall be allocated on a systematic basis over their useful lives, based on best estimates of those useful lives. Difficulty in estimating the useful life of an asset does not …
Road earthwork assets that are assessed as not having a limited useful life shall not be depreciated. Such an assessment shall be based on engineering reviews of the expected physical wear and tear and technical obsolescence of the particular earthworks …
The depreciation or non-depreciation of road earthwork assets shall be reviewed at least at the end of each reporting period, to ensure that the accounting policy applied to particular earthwork assets reflects the most recent assessment of the useful …
This Interpretation applies to annual reporting periods beginning on or after 1 January 2005. [Note: For application dates of paragraphs changed or added by an amending pronouncement, see Compilation …