IAS 16 (Property, Plant & Equipment)¶

IAS 16 Property, Plant and Equipment is the IFRS standard governing how tangible long-term assets are recognised, measured, depreciated, and disclosed in financial statements. In Thailand, the corresponding local standard is TFRS 16 (which carries the IAS 16 substance with local adaptations for the Thai accounting framework).

Hospitals own significant tangible assets — medical equipment is often the second-largest balance-sheet line after buildings — so IAS 16 compliance matters both for external audit and for management reporting.

HEMMS supports parts of the IAS 16 lifecycle and explicitly leaves other parts to Odoo Accounting. This page sets out the boundary honestly.

IAS 16 lifecycle and HEMMS coverage¶

Recognition: when an item enters HEMMS¶

A piece of medical equipment is recognised in HEMMS when it is created in maintenance.equipment. The form captures:

• Name + serial number + ref. no. (ref from OCA maintenance_equipment_ref = รหัสครุภัณฑ์)
• Category (hierarchical via maintenance_equipment_category_hierarchy)
• Purchase cost — field present on Odoo's maintenance.equipment by default (cost)
• In-service date — effective_date on the same model
• Location (department + location field)
• Brand and model — added by roots_hemms_asset_master (Layer 3)

For IAS 16 recognition the auditor cares about (a) that the asset exists, (b) the cost is captured, and © the in-service date is correct. The Mass Import module (Q6) lets a finance team load these fields in bulk from the procurement system at year-end, with full provenance (which spreadsheet, which user, when).

Subsequent costs: parts vs repairs¶

IAS 16 distinguishes:

• Replacement of a significant component (e.g., a high-voltage tube in a CT scanner) → capitalise; derecognise the carrying amount of the old component if separately tracked.
• Day-to-day servicing (calibration, cleaning, consumables) → expense through profit or loss.

HEMMS supports this split structurally:

HEMMS does not auto-classify the journal treatment — the spare-parts consumption goes to stock and is posted through Odoo Inventory in the standard way. The hospital's Finance team determines the IAS 16 treatment per material item. HEMMS provides the operational evidence (which part, which equipment, which date, which technician, signed by whom).

Componentisation¶

IAS 16 requires that components with different useful lives be depreciated separately if their cost is significant relative to total cost. For a CT scanner, the body of the machine, the X-ray tube, and the software licence might have lives of 15 / 5 / 3 years respectively.

HEMMS today models each piece of equipment as a single maintenance.equipment record. Componentisation would require either:

1. Creating child equipment records for each significant component (workable but not natively supported in the IAS 16 sense), or
2. A future hemms.asset.component model that ties multiple components to one parent equipment for depreciation purposes.

⚠️ This is on the roadmap and is part of the broader depreciation roadmap.

Depreciation roadmap¶

Depreciation posting is not shipped in HEMMS today. The recommended path for hospitals that need IAS 16 / TFRS 16 depreciation:

For an interim solution today, hospitals manually mirror equipment master data into account.asset records in the accounting module and run depreciation there. Mass Import (Q6) can speed the mirroring up.

Impairment¶

IAS 16 (and IAS 36 for the impairment test itself) requires impairment review when indicators arise — physical damage, obsolescence, drop in market value, restructuring.

HEMMS's roots_hemms_asset_inspection module captures condition during the annual ปจป. inspection on a 5-state selection:

This data feeds the impairment conversation between BME and Finance at year-end. HEMMS does not perform the impairment test or post any write-down — that is the accounting team's call, with the auditor.

Derecognition¶

IAS 16 requires derecognition on disposal or when no future economic benefits are expected. HEMMS supports this operationally:

1. Annual Asset Inspection flags the equipment lost or unused.
2. The BME team raises a final disposal maintenance.request (e.g., for pickup by an e-waste vendor).
3. The equipment record's current_condition is updated; the audit log captures the change in hemms.stage.transition.log.
4. Finance reads the ปจป. signed report and posts the derecognition entry in Odoo Accounting.

The signed ปจป. report (under Q4 sign_oca) is the load-bearing evidence the external auditor reads to support the derecognition.

Disclosure¶

IAS 16 requires per-class disclosure of:

• Measurement basis (cost vs revaluation)
• Depreciation method and useful lives
• Reconciliation of opening + additions + disposals + depreciation + impairment + closing

HEMMS provides the additions and disposals data (via the equipment register + ปจป. inspection). The remaining lines (measurement basis, method, life, closing carrying amount) come from Odoo Accounting once the roadmap depreciation integration is in place.

Summary¶

Related pages¶

• Compliance Overview — coverage matrix across all regimes
• Asset Inspection module — the condition-evidence source for impairment & derecognition
• Spare Parts module — the parts-vs-repair distinction
• Service Contracts module — recurring vendor spend
• For CFO / Finance Director — user-guide companion page