State the different ways in which fixed assets can be recorded in the balance sheet?

Answer 1

To summarise IAS 16 Property, Plant & equipment,

Initial Measurement -
They should be initially recorded at cost. [IAS 16.15]

Measurement Subsequent to Initial Recognition -
IAS 16 permits two accounting models:
- Cost Model. The asset is carried at cost less accumulated depreciation and impairment. [IAS 16.30]
- Revaluation Model. The asset is carried at a revalued amount, being its fair value at the date of revaluation less subsequent depreciation, provided that fair value can be measured reliably. [IAS 16.31]

Depreciation (Cost and Revaluation Models)

For all depreciable assets:
The depreciable amount (cost less prior depreciation, impairment, and residual value) should be allocated on a systematic basis over the asset's useful life [IAS 16.50].

Then don't forget to apply IAS 36 Impairment of Assets
At each balance sheet date, review all assets to look for any indication that an asset may be impaired (its carrying amount may be in excess of the greater of its net selling price and its value in use). IAS 36 has a list of external and internal indicators of impairment. If there is an indication that an asset may be impaired, then you must recognise the impairment thru the income statement.

To sum up, PPE are stated at cost or revalued amount less accumulated depreciation and accumulated impairment losses.

In the balance sheet, PPE are usually shown as 1 figure, the net book value only, and in the notes to the financial statements, you'd give a columnar breakdown of the major categories of PPE togther with all the necessary disclosures.