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Depreciation is described in IAS 16, but it deals with Property, Plant and Equipment from it cost recognition, Revaluation, Disposal and distribution of cost. In the part of Distribution of Property, Plant and Equipments cost Deprciation comes in front and it allowes cost of Property, Plant and Equipment to be distributed to its useful life.
IAS-16 describes the consumption pattren of assets known as depreciation.
Straight line method: The value of the asset is equally spread within the useful life of the asset
Reducing Balance method: The value of depreciation is a percentage of the net book value of the asset as at the date of depreciation.
Depreciation is charges on Tangible fixed assets, Property Plant and equipment that is dealt under IAS-16.
" IAS-16, saying about depreciation of tangible assets,held under ias-16
depreciation is systmatic allocation of cost over its usefull life.
Depreciation is charged on assets by three methods
1. Reducing Balance method
2. Useful life time method
3. hours based method
IAS 16 says about Property, Plant & equipment
Recognition per the future economics benefits associated with the assert & cost of the asset measured reliably
Depreciation per over its useful life, method at economics benefits
IAS -16 Plant, Property and Equipment says about Depreciation.
IAS 16 and IAS 38 — Revenue-based depreciation method
IAS 16(property plant and equipment) defines depreciation as the systematic allocation of the value of an asset over its useful life.
While there are many different methods of depreciation, the 2 commonly used methods are:
1) Straight line method: The value of the asset is equally spread within the useful life of the asset
2) Reducing Balance method: The value of depreciation is a percentage of the net book value of the asset as at the date of depreciation.
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