IAS 16

Asset

A resource controlled by the entity resulting from past events, expected to bring future economic benefits.

Non-current assets

Assets intended for continuous use in the business, like business premises and office equipment.

Current assets

Assets that frequently change form, such as cash to inventory and back to cash.

Tangible non-current assets

Non-monetary assets with physical substance, like property, plant, and equipment.

Intangible non-current assets

Identifiable non-monetary assets without physical substance.

Property, plant & equipment (PP&E)

Assets with specific use within the entity, expected to be used over more than one period.

Depreciation

Systematic allocation of an asset's depreciable amount over its useful life.

Depreciable amount

The cost of an asset less its residual value.

Useful life

The period an asset is expected to be used by the entity.

Residual value

The estimated value of an asset at the end of its useful life.

Cost model

Assets carried at cost less accumulated depreciation and impairment losses.

Revaluation model

Assets measured at fair value less subsequent depreciation and impairment losses.

Revaluation reserve

A reserve in equity for increases in the carrying amount of revalued assets.

Materiality

All items likely to impact investors' decisions should be considered.