IFRS Foundation Issues Educational Module 17 on Property, Plant and Equipment

Posted 30 July 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The technical staff of the International Accounting Standards Board (“IASB”) has released Educational Module 17 to support the practical implementation of Section 17 (‘Property, Plant and Equipment’) of the third edition of the IFRS for SMEs Accounting Standard, which was issued in February 2025.

Under the financial reporting framework established by the Companies Act, No. 71 of 2008 and its associated regulations, eligible South African small and medium-sized entities that do not have public accountability may adopt the IFRS for SMEs Accounting Standard for general purpose financial statements. Module 17 provides technical guidance on accounting for property, plant, and equipment (“PPE”), detailing recognition requirements, cost determination, subsequent measurement, and financial statement presentation.

This educational publication is part of a comprehensive suite of implementation resources released by the IFRS Foundation to support stakeholders learning about, applying, or reviewing financial statements prepared under the third edition of the Standard. Key technical aspects addressed in Module 17 include:

  • Scope Definition: Clear distinctions between assets classified under Section 17 and those falling under investment property (Section 16) or inventory (Section 13).
  • Measurement Frameworks: Implementation guidance on initial cost recognition (including dismantling obligations) and subsequent accounting under either the cost model or the revaluation model.
  • Depreciation and Impairment: Technical principles regarding useful lives, residual value assessments, component depreciation, and cross-references to impairment testing under Section 27 (‘Impairment of Assets’).
  • Comparative Analysis: Explicit comparison highlighting structural and accounting differences between Section 17 of the SME Standard and IAS 16 (Property, Plant and Equipment) under full IFRS Accounting Standards.

Click here to download the IFRS for SMEs Educational Module 17: Property, Plant and Equipment.

What this means for you, your business, or your clients

  • For yourself: Practitioners and independent reviewers must review Module 17 to ensure correct application of Section 17 valuation, depreciation, and disclosure rules when preparing or auditing SME financial statements.
  • For your business: Accounting firms must update their SME compliance working papers, audit programs, and technical reference libraries to reflect the IASB technical staff guidance for the third edition standard.
  • For your clients: SME clients reporting under the Companies Act, No. 71 of 2008 using IFRS for SMEs must assess their asset registers, capitalisation thresholds, and depreciation estimates against the updated framework.

Originally published at https://accountingacademy.co.za/news/read/ifrs-for-smes-educational-module-17-property-plant-and-equipment

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