Document ID: chunk:federal_register_of_legislation:F2023C00192:body:0:p3
Version: federal_register_of_legislation:F2023C00192
Segment Type: other
Provision Reference: 
Character Range: 5930–8759

of Australian Accounting Standards and Statement of Accounting Concepts SAC 1 Definition of the Reporting Entity also applies. For-profit entities applying the Conceptual Framework for Financial Reporting are set out in paragraph Aus1.1 of the Conceptual Framework.

Scope
2 This Standard shall be applied in accounting for property, plant and equipment except when another Standard requires or permits a different accounting treatment.
3 This Standard does not apply to:
(a) property, plant and equipment classified as held for sale in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations.
(b) biological assets related to agricultural activity other than bearer plants (see AASB 141 Agriculture). This Standard applies to bearer plants but it does not apply to the produce on bearer plants.
(c) the recognition and measurement of exploration and evaluation assets (see AASB 6 Exploration for and Evaluation of Mineral Resources).
(d) mineral rights and mineral reserves such as oil, natural gas and similar non-regenerative resources.
However, this Standard applies to property, plant and equipment used to develop or maintain the assets described in (b)–(d).
4 [Deleted]
5 An entity using the cost model for investment property in accordance with AASB 140 Investment Property shall use the cost model in this Standard for owned investment property.

Definitions
6 The following terms are used in this Standard with the meanings specified:
A bearer plant is a living plant that:
(a) is used in the production or supply of agricultural produce;
(b) is expected to bear produce for more than one period; and
(c) has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales.
(Paragraphs 5A–5B of AASB 141 elaborate on this definition of a bearer plant.)
Carrying amount is the amount at which an asset is recognised after deducting any accumulated depreciation and accumulated impairment losses.
Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other Australian Accounting Standards, eg AASB 2 Share-based Payment.
Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value.
Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.
Entity-specific value is the present value of the cash flows an entity expects to arise from the continuing use of an asset and from its disposal at the end of its useful life or expects to incur when settling a liability.
Fair value is the price that would be received to sell an asset