UK GAAP - PPE including Borrowing Costs

FRS 102 – Section 17 – Property, Plant and Equipment sets out the requirements for the initial and subsequent recognition of the assets, the depreciation charges and impairment losses in relation to the assets and accounting for derecognition of assets.

This module will go into detail on when an asset should be capitalised and classified as an item of property, plant and equipment, including any related costs, any subsequent measurement and derecognition. It will also cover FRS 102 Section 25 -Borrowing Costs.

After completing this module, you will be able to:

• calculate the purchase costs to be included in property, plant and equipment under Section 17.
• calculate borrowing costs to be included in the cost of property, plant and equipment.
• identify the cost and revaluation subsequent measurement options.
• calculate and account for revaluation gain and losses in Other Comprehensive Income under the revaluation method.
• calculate depreciation.
• recognise the different ways of disposing of assets and the accounting implications of each way.
• calculate profit on disposal of property, plant and equipment.
• calculate the impact of changes in decommissioning liabilities on property, plant and equipment, in line with FRS 102 Section 17.10(c), combined with Section 21 – Provisions and Contingencies.
• prepare relevant and accurate disclosures and presentation within the financial statements

This module is part of the UK GAAP Library or can be booked as an individual course. To book the full library click here.