Which accounting standard deals with property, plant and equipment?

The accounting standard that addresses property, plant, and equipment is IAS 16. This standard provides guidelines for the recognition, measurement, and derecognition of these long-term assets, which are essential for a company's operations. IAS 16 specifies how to determine the cost of an asset, the method of depreciation to apply, and how to account for any impairment losses.

A key aspect of IAS 16 is its focus on capitalizing significant costs related to acquiring or constructing assets, which can include purchase price, installation costs, and any necessary adjustments to bring the asset to its intended use. Additionally, it outlines how to assess the useful life of the asset and appropriate depreciation methods to reflect the consumption of the asset’s economic benefits over time.

This standard is crucial for ensuring that the financial statements of an organization accurately reflect the value of its property, plant, and equipment and provide stakeholders with relevant information regarding its long-term investment in such assets.