TACC302 Financial Accounting: PPE Disclosure Analysis of ASX Top 200

This report provides a comprehensive analysis of Property, Plant, and Equipment (PPE) disclosures for two ASX Top 200 companies, Afterpay Ltd. and Breville Group Ltd. It examines the range of measures used to determine the amount of PPE, including the cost of assets, historical cost, replacement cost, and depreciation. The report evaluates the logic of adding these items and interprets the total amount for holding, plant, and equipment in the financial statements. It also covers the factors that controllers should consider when setting up company accounting policy associated with PPE, such as cost models, depreciation methods, and asset revaluation. Finally, the report details a view on the future measurement of PPE and presents recommendations for accounting standard setters, emphasizing the importance of considering bearer plants and the impact of depreciation and cost models on PPE valuation. Desklib offers a range of solved assignments and past papers for students.

Financial Accounting

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
1. Revaluate and measure the PPE disclosure of chosen companies.....................................4
2.Cover the factors that controller should consider when setting up company accounting
policy associated to PPE.........................................................................................................6
3. Detail your view on the future measurement of PPE and provide present the accounting
standard setters.......................................................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8
APPENDIX......................................................................................................................................9

EXECUTIVE SUMMARY
Property, plant & equipment are the fixed assets of any organisation which is working as
the backbone as well. As per the given companies, it can be said that there are various aspects
which needs to be measured such as cost of assets, Historical cost, Replacement cost and
Depreciation so that the effective evaluation can be made. Further more there are aspects such as
cost model, depreciation, revaluation cost whiling setting the up company accounting policy
relating to PPE.

INTRODUCTION
Belongings, plant and equipment revelation can be arises from alteration in analysing in
respect to residuary values, approximate costs of dismantling, eliminating or restoring items of
property plant and equipment, depreciation methods and useful lives. These are the physical or
tangible long term assets which are typically have the life of more than one year. For this
respective report, After pay Ltd. And Breville Group Ltd. Are the chosen organisation, these
both are the Australian financial application company operating in Australia in United Kingdom.
This report will cover the scope of measures is being used to find out the amounts of these items
and also interpret the total amount for property, plant and equipment in the financial statement.
Furthermore, discuss the various components that the accountants must consider when setting the
company with their accounting policy relating to PPE. Lastly, provide advises to accounting
standard setters.
MAIN BODY
1. Revaluate and measure the PPE disclosure of chosen companies
What are the range of measures that is used to determine amount for these items in the
report of every organisation?
In order to calculate the PPE disclosure, there are various aspects which helps in
calculating the overall PPE value by which they can understand the efficiency of machines or
the assets available within the organisation. In context to Afterpay Ltd. And Breville Group Ltd.
There are various measures which is being analysed in order to determine the amounts every
organisation are given below:
 cost of assets: it is the major factor that helps in analysing the amount of PPE of an
organisation as cost of assets are the total reserve of any company which also helps in
analysing the overall financial value of the company. In context to Afterpay Ltd. And
Breville Group Ltd. In context to Afterpay Ltd. And Breville Group Ltd., thee value
helps in understanding the overall value of the company.
 Historical cost: This is the cost of the company which is being incline at the time of
purchase of PPE that shows the overall value of the company and also can define the
future success of the machines within the organisation. In context to Afterpay Ltd. And

Breville Group Ltd., these are the aspects which helps in evaluating the final cost of the
company while making purchasing of PPE.
 Replacement cost: It is the cost which is being incurred at the time of replace of the
machine at the time of their fuller utilisation and the use of machine so that they can
rightly utilised in an appropriate manner. In context to Afterpay Ltd. And Breville Group
Ltd. The replacement cost of the company can be vary as they are having integrated set of
skills while having the appropriate results.
 Depreciation: It is the total amount which is being incurred on the maintenance of the
machine and equipment so that they can be keep with fuller utilization so that they can
rightly maintained the sale of their products.
In context to Breville Group Ltd. the PPE value for the year of 2020 is $ 5127('000) and
the cost of their PPE was valued at $ 3389('000). thus this is showing good return on investment.
Where as Afterpay Ltd., the PPE value of the company is $13541('000) and the cost of
purchasing was for the year of 2020 is $ 7004('000) and this is showing that their machine are
giving higher level of return and the efficiency of their machines.
Do you think it is logical to add the items, given the measures used?
Yes, adding these factors to the given measures helps in analysing the overall value of the
companies and they can further estimate the actual value of the machine, equipment and the
plant. As the measures given by the firms such as the cost of assets and the value of the company
also leading to have the better approach in their working. These are the factors which is leading
to have the main consideration to the manager while purchasing their machines by estimating
their actual cost. By estimating these measures, this also helps the In context to Afterpay Ltd.
And Breville Group Ltd. To analyse the scrap value of the PPE. Thus, by this the manger can
rightly estimate the overall efficiency of machine.
How would you interpret the e n t i r e amount for h o l d i n g , plant and equipment in the
financial statements?
For estimating the total amount for property, plant and equipment the annual report is
being given and shows that Breville Group Ltd. for the year of 2020 is having the cost of PPE is
$7004('000) and the total,value of machine is valued at $13541('000) which is showing the
significant rise in the overall profitability of the company as the overall PPE value is increasing.
In context to Afterpay Ltd., the cost of purchasing of PPE is $ 3389('000) and the value of PPE
in the year of 2020 is $ 5127('000) which is showing the increase in the value of Property, Plant

and equipment. Breville Group Ltd. Have sell their PPE at the value of $ 126('000) in the year
of 2020.
Comparison of measures used by the various companies for similar items. Are there any
inconsistencies in how similar items are measured by the different companies?
As given in the financial statement, this can be said that the Breville Group Ltd. Is
having the purchasing cost is $7004('000) ad then the PPE value is $13541('000) so this is
showing the increase or the fluctuation in the overall price of PPE. Whereas, In relation to
Afterpay Ltd., the purchasing cost of the company is $ 3389('000) and the net value of the PPE
is valuing at $ 5127('000) in the year of 2020. this can be said that in comparison of both the
company Breville Group Ltd. Is having more value of their PPE as per their purchasing cost of
PPE and this can be due to the fluctuation in the current asses of the company and also showing
the overall sale of PPE.
2.Cover the factors that controller should consider when setting up company accounting policy
associated to PPE
There are various factors which is being analysed while setting up company accounting
policy related to the PPE and these are given below:
 Cost model: After analysing a an assets, a part of property, plant and equipment is being
carried and its cost by minimising the any accumulated depreciation and impairment
looses.
 Depreciation: It is the major factors which is being determined in order to have the
better results within the organisation. As t is the cost which is being incurred on the
maintenance of machine and equipment. Thus, this helps the company while having the
overall consideration to the company such as Afterpay Ltd. And Breville Group Ltd.
 Revaluation of assets: it is the adjustment is being made in carrying the value of fixed
assets by adjusting it upward and downward. This also helps in estimating the overall
value of the company in term of their monetary aspects.
3. Detail your view on the future measurement of PPE and provide present the accounting
standard setters.
As per the Internal accounting standards 16, it can be said that the amount of property,
plant and equipment includes the bearer pants related to the agriculture activity and this is being

expected to be used more than one period. The cost of PPE is being measured on the basis of
purchasing cost which includes the import and non-refundable purchase taxes after deducting the
rebate and discount. Where as, PPE s per the company accounting policy is being affects by the
depreciation of machine, cost model and evaluation cost. These aspects also helps in analysing
the actual value of PPE.
CONCLUSION
From the above report, it is concluded that property, plant and equipment are fixed assets
of the firm which also leads to generate more profits to the company when they can have more
scrap value and settlement cost. Furthermore, cost of assets, depreciation are the measures to
evaluates the overall value of PPE of the company. Any of the evaluator can find the PPE in
balance sheet under the head of fixed assets or current assets.

REFERENCES
Books and Journals
Singer, K. and Wullenkord, C., 2020. Kommentar zum IAS 16–Property, Plant and Equipment.
Internationale Rechnungslegung–IFRS: Kommentar, pp.1-32.
Muttakin, M.B. And et. al.,2020. Integrated reporting, financial reporting quality and cost of
debt. International Journal of Accounting & Information Management.
Chen, Y. And et. al.,2020. Anti‐Corruption and Corporate Tax Burden: Evidence from China.
International Review of Finance, 20(3), pp.781-788.
Chohan, U.W., 2021. Blockchain and the extractive industries: cobalt case study. Available at
SSRN 3138271.
Mattei, G., Jorge, S. and Grandis, F.G., 2020. Comparability in IPSASs: Lessons to be learned
for the European standards. Accounting in Europe, 17(2), pp.158-182.
Clarkson, P., Gao, R. and Herbohn, K., 2020. The relationship between a firm’s information
environment and its cash holding decision. Journal of Contemporary Accounting &
Economics, 16(2), p.100201.
Pandey, R. And et. al., 2020. Female directors on the board and cost of debt: evidence from
Australia. Accounting & Finance, 60(4), pp.4031-4060.

APPENDIX
Annual report of Afterpay Ltd.