Mfrs 116.docx 63f

Nestle Berhad is complied with MFRS 116, this is because all the property, plant and equipment has been clearly recorded in the financial position.

the company have clearly identify the Property, Plant and equipment into cost, however, there are impairment losses and also depreciation.

An impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount(para 6)

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item shall be depreciated separately.(43)

The depreciable amount of an asset shall be allocated on a systematic basis over its useful life.(50)

Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment from the date that they are available for use.