IFRS for SMEs / Section 17: Property, Plant and Equipment

Section 17: Property, Plant and Equipment

Section 17 covers tangible assets used for more than one period: recognition at cost, depreciation over useful life, and derecognition on disposal.

Disclosures to look for

17.31 For each class: measurement basis, depreciation method, useful lives or rates, and a reconciliation of the carrying amount from opening to closing.

South African practice

Set a capitalisation threshold: an item bought above it is an asset and depreciated, below it an expense.

How Sight applies it

The PPE note reconciles each class; bank purchases above the company's capitalisation threshold are suggested as assets.

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