[Illustrative Checklist] Disclosure requirements under Ind AS 16, Property, Plant and Equipment

The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment (PPE) so that users of the financial statements can discern information about an entity’s investment in its PPE and the changes in such investment. The principal issues in accounting for PPE is the recognition of the assets, determination of their carrying amount, depreciation charge and impairment losses to be recognized in relation to them.

As per the requirement of this Ind AS, an entity is required to follow the below-mentioned disclosure requirements:

• • The effects of taxes on income, if any, resulting from the revaluation of PPE are recognized and disclosed in accordance with Ind AS 12.
  • The financial statements shall also disclose:

(a) the existence and amounts of restrictions on title, and PPE pledged as security for liabilities;

(b) the amount of expenditures recognized in the carrying amount of an item of PPE in the course of its construction;

(c) the amount of contractual commitments for the acquisition of PPE; and

• • In case there is a change in an accounting estimate in accordance with Ind AS 8, that has an effect in the current period or is expected to have an effect in subsequent periods, whether the entity has given disclosure with respect to:

(a) residual values;

(b) the estimated costs of dismantling, removing or restoring items of PPE;

(c) useful lives; and

(d) depreciation methods

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