What does 60-62A require?

The method chosen must mirror how the entity expects to consume the asset's future economic benefits, and it is re-examined at least once a year at the year end; a significant change in the expected consumption pattern requires a change of method, accounted for as a change in estimate under AASB 108. Straight-line, diminishing balance and units of production are all acceptable, the entity picking the one that best fits the expected pattern and applying it consistently until the pattern changes. A method driven by the revenue generated by activities using the asset is not acceptable, because revenue reflects other inputs, selling effort, volumes, prices and inflation rather than consumption of the asset.

AASB 116 Property, Plant and Equipment 60-62A...

Other controls in Measurement after recognition: cost model, revaluation model, depreciation and impairment (paragraphs 29 to 66, Aus39.1, Aus40.1, Aus40.2) – AASB 116 Property, Plant and Equipment

29-30 Accounting policy choice: adopt either the cost model or the revaluation model for each whole class of PPE; owner-occupied property held in unit-linked funds or as insurance underlying items may instead use the AASB 140 fair value model as a separate class
31-38 Revaluation model: carry items whose fair value is reliably measurable at fair value at the revaluation date less later depreciation and impairment, revalue often enough that carrying amounts stay close to fair value, revalue whole classes together, and adjust accumulated depreciation consistently
39-42,Aus39.1-Aus40.2 Revaluation movements: credit increases to other comprehensive income and the revaluation surplus (through profit or loss only to reverse an earlier loss), charge decreases to profit or loss except against an existing surplus for that asset; not-for-profit entities account on a net class basis; surplus transfers to retained earnings bypass profit or loss
43-49 Component depreciation: depreciate separately each part whose cost is significant relative to the whole item, grouping parts with the same life and method, depreciate the remainder, and recognise the charge in profit or loss unless it forms part of another asset's cost
50-59 Depreciable amount and period: allocate cost less residual value systematically over useful life, review residual value and useful life at least each year end as a change in estimate, depreciate from availability for use until held-for-sale classification or derecognition, consider usage, wear, obsolescence and legal limits, and treat land and buildings separately
63-66 Impairment and compensation: test PPE for impairment under AASB 136, and recognise third-party compensation for impaired, lost or surrendered items in profit or loss once it is receivable, accounting for the impairment, the derecognition, the compensation and any replacement as separate events

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The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.

MCP endpoint All AASB 116 Property, Plant and Equipment controls