You are required to conduct research on IAS 16/AASB 116, property, Plant and Equipment and comment on whether the standard is consistent with the conceptual framework. In your report, you will have to address the below questions.
A. Identify key definitions and recognition criteria that are outlined in IAS 16/AASB 116 for property, plant, and equipment.
B. Provide examples of assets that meet the recognition criteria and those that do not. Justify your examples based on the conceptual framework.
C. Compare and contrast the cost model and the revaluation model in terms of their implications for financial reporting. How do these models align with the conceptual framework's objectives?
D. Describe the methods allowed for subsequent measurement of property, plant, and equipment under IAS 16/AASB 116
E. Analyse how the choice of depreciation method impacts financial statements and financial performance reporting. Evaluate whether these methods are consistent with the conceptual framework's principles of reliability and relevance.
F. Evaluate the disclosure requirements specified by IAS 16/AASB 116 regarding property, plant, and equipment and discuss how these disclosures contribute to transparency and decision-making for stakeholders. Do they enhance the understandability and comparability of financial statements, as advocated by the conceptual framework?