Tag: FRS 116

FRSIC Consensus 11 – When A Company Changes The Measurement Basis For Its Assets Which Warrants A Prior Year Adjustment, Should The Related Depreciation Charges Be Adjusted Retrospectively Based On The Revised Definition Of Residual Value In Accordance With FRS 116? (31 July 2008)

The effective date of the application of this FRSIC CONSENSUS was 31 July 2008.

The release of FRSIC Consensus 11 – When A Company Changes The Measurement Basis For Its Assets Which Warrants A Prior Year Adjustment, Should The Related Depreciation Charges Be Adjusted Retrospectively Based On The Revised Definition Of Residual Value In Accordance With FRS 116? provides guidance, on the issue in the event that there is a change in the measurement basis of a property, plant and equipment from revaluation model to cost model (which is a change in accounting policy), how should the retrospective application be computed had paragraph 54 and 55 of FRS 1162004 been applied previously.  The change in the measurement basis takes place in the first year of adoption of FRS 116. The issue is in the event that there is a change in the measurement basis of a property, plant and equipment from revaluation model to cost model (which is a change in accounting policy), how should the retrospective application be computed had paragraph 54 and 55 of FRS 1162004 been applied previously.  The change in the measurement basis takes place in the first year of adoption of FRS 116.

You can download FRISC Consensus 11 here: http://www.frsic.my/consensus_consensus.asp

Sample Disclosure – Note On Review Of Residual Values And Remaining Useful Life Of Property, Plant And Equipment (14 October 2009)

Review Of Residual Values And Remaining Useful Life Of Property, Plant And Equipment

FRS 116: Property, Plant and Equipment requires that the review of the residual values and remaining useful life of an item of property, plant and equipment to be conducted at least at each financial year end. Such review has been completed and the directors have concluded that there were no revisions required to be made this year.