Topic

Terms

Methods of Measurement
and Accounting

Processes involved

Transactions that
triggered JE

Peculiar
account titles
used

Disclosures require

PROPERTY
, PLANT
AND
EQUIPME
NT

Carrying
amount
Cost
Depreciation
Depreciable
Amount
Entity-specific
Value
Exchange
Transactions
Fair Value
Impairment Loss
of a Cashgenerating
Asset
Impairment loss
of a Non Cashgenerating
Asset
Non- Exchange
Transactions
Residual Value
Recoverable
Service Amount
Useful Life
Value in use of a
cash generating

- PPE shall be
recognized as an
asset if it qualifies on
the given definition
of asset and it meets
the capitalization
threshold of P15,000
(minimum cost
recognized as PPE in
the balance sheet).

Modes of
Acquisition of
PPE

- PPE that qualifies

for recognition as an
asset shall be
measured at cost.
However, where the
PPE is acquired
through a nonexchange
transaction, its cost
shall be measured at
its fair value as at
the date of
acquisition.

Intra-agency &
Inter-agency
Transfer

-This includes the

attributable cost in
bringing the asset to
the location and
condition necessary
for it to be capable of
operating in the
manner intended by

Purchase of PPE
Measurement
after
Recognition.

Cash/ Credit/
Installment
Purchase

Recognition of
Expense

Guaranty/
Security
Deposits
Payable

Recognition of
Receipt of NCA for
TRA and
remittance to BTr

Accumulat
ed
Surplus/
(Deficit)

Depreciation

Acquisition
Through Fund
transfer to other
NGA or CSO

Recognition of
delivery,
acceptance &
issue of
construction
materials

Acquisition
Through Finance
Lease

Recognition of
turn-over and
acceptance of PPE

Receipt,
Inspection and
Acceptance of
PPE

Derecognition of
Asset given up
and recognition of
new Asset
acquired

Issue of PPE
Betterments

Other
Provisions

Recognition of
income from
donation/grants
Impairment Loss,

A. The measurement bas

for determining the gro
carrying amount.
B. The depreciation meth
including the useful life
depreciation rate used
C. The gross carrying amo
the accumulated depre
(aggregated with accu
impairment losses) at
beginning and end of t
period.
D. A reconciliation of the
amount at the beginnin
end of the period show
Additions; Disposals;
Acquisitions through en
combinations; Increase
decreases and impairm
losses; Impairment los
recognized in surplus o
in accordance with PPS
Depreciation; Other ch
and A reconciliation re
be prepared using the
prescribed format.
E. The existence and amo
restrictions on title, an
pledged as securities f
liabilities;
F. The amount of expend
recognized in the carry
amount of an item of P
course of its constructi
G. The amount of contrac
commitments for the a
of PPE including the am