IAS 16 par. 2 to par. 5 described the scope of IAS 16 Property, Plant and Equipment (PPE)
This Standard shall be applied in accounting for property, plant and equipment except when another Standard requires or permits a different accounting treatment (par. 2).
Par. 3 states that this standard does not apply to :
(a) property, plant and equipment classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations;
(b) biological assets related to agricultural activity (see IAS 41 Agriculture);
(c) the recognition and measurement of exploration and evaluation assets (see IFRS 6 Exploration for and Evaluation of Mineral Resources); or
(d) mineral rights and mineral reserves such as oil, natural gas and similar non-regenerative resources.
However, this Standard applies to PPE used to develop or maintain the assets described in (b)-(d).
Other Standards may require recognition of an item of PPE based on an approach different from that in this Standard. For example, IAS 17 Leases requires an entity to evaluate its recognition of an item of leased PPE on the basis of the transfer risks and rewards. However, in such cases other aspects of the accounting treatment for these assets, including depreciation, are prescribed by this Standard (par. 4).
Further, par. 5 states that an entity shall apply this Standard to property that is being constructed or developed for future use as investment property but does not yet satisfy the definition of "investment property" in IAS 40 Investment Property. Once the construction or development is complete, the property becomes investment property and the entity is required to apply IAS 40. IAS 40 also applies to investment property that is being redeveloped for continued future use as investment property. An entity using the cost model for investment property in accordance with IAS 40 shall use the cost model in this Standard.
Source : International Accounting Standard (IAS) 16 Property, Plant and Equipment
