Professional Documents
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TANGIBLE
ASSETS held for:
purchased, 1) use in the
constructed, production or
developed or supply of goods or
otherwise
services
acquired
2) rental to others
3) administrative
purposes
expected to be used not intended for resale
during more than one in the ordinary course
reporting period of operations
Immovable
Initial Cost
Cost
Subsequent Cost
OR
Fair Value
Session 9: Applying the Accounting Policies
GAM: Accounting Slide 9-14
on Property, Plant and Equipment
ELEMENTS OF COST
Directly attributable
cost
Session 9: Applying the Accounting Policies
GAM: Accounting Slide 9-15
on Property, Plant and Equipment
Initial Cost-Reforestation Projects
Survey, Mapping and Planning (SMP)
Plantation Establishment
Betterments
PPE; increase its service life; improve the quality of output; or reduce
Purchase
Construction
Exchange transaction
Non-exchange transaction
Transfer
Finance lease
Cash
Account
Installment
With promotional items
-promotional item received is the same as PPE purchased
-promotional item received is different from the PPE purchased
Lump sum price
Grants
Assistance in the form of transfer of resources, in cash or in kind from other of government, private
sectors or international institutions
Intra-agency transfers
transfer from Central Office to Regional Offices/Staff Bureaus or vice versa
Inter-agency transfers
transfer from one government entity to another entity
Session 9: Applying the Accounting Policies
GAM: Accounting Slide 9-25
on Property, Plant and Equipment
Transfers/Finance Lease
-Transfers
Implementation of projects through funds
transferred/received may require the acquisition of the
necessary PPE
Source agency shall record and monitor the PPE if the
Memorandum of Agreement/Understanding (MOA/U) provides that
the PPE shall be returned to the source agency
Implementing Agency shall record and monitor the PPE if the
Memorandum of Agreement/Understanding (MOA/U) provides that
the PPE shall be donated to the implementing agency
Finance Lease
-Lease that transfers substantially all the risks and rewards
incident to ownership of an asset
Session 9: Applying the Accounting Policies
GAM: Accounting Slide 9-26
on Property, Plant and Equipment
Measurement after Recognition
Cost
Model
Carryi RSA
Impairm (NCGA)
ng
or
ent Loss Amou RA
nt (CGA)
Cost
Accumulated Fair value less
Depreciation Cost to sell and
and Value in Use
Accumulated whichever is
Impairment higher
Loss
Session 9: Applying the Accounting Policies
GAM: Accounting Slide 9-32
on Property, Plant and Equipment
REVERSAL OF IMPAIRMENT LOSS
Lost property and the related accounts shall be derecognized in the books
upon receipt of the Report of Lost, Stolen, Damaged, Destroyed Property
submitted by the Property Officer supported by a Notice of Loss prepared by
the Accountable Officer.
Comparative Reporting Periods 2015 2014 2015 2014 2015 2014 2015 2014
Beginning Carrying Amount 2,025 2,025 2,090 2,260 1,085 1,100 200 150
Carrying Amount (As per Statement of Financial Position) 2,025 2,025 2,000 2,090 1,000 1,085 150 200