IAS 16 establishes principles for recognising property, plant and equipment as assets, measuring their carrying amounts, and measuring the depreciation charges

and impairment losses to be recognised in relation to them. It basically prescribes the accounting treatment of property, plant and equipment.

Required:

i. Explain how initial cost of property, plant, and equipment (PPE) should be measured and state the circumstances in which subsequent expenditure on non-current assets should be capitalised. (7 marks)

b) International monetary fund (IMF) is part of the World Financial System. Critically appraise it’s role. (7 Marks)

c) Identify and explain the role of the regulatory bodies set up in 2008 due to the financial crisis in the United Kingdom. (6 Marks)

c) Globalisation can be defined as the increase in trade around the world with reference to large companies producing and trading goods in different countries thus having international influence and operating on an international scale.

Required:

i. What impact does globalisation have on an organisation and how can this be managed effectively