{"id":1968,"date":"2026-04-30T19:59:37","date_gmt":"2026-04-30T19:59:37","guid":{"rendered":"https:\/\/versimarket.com\/blog\/?p=1968"},"modified":"2026-04-30T19:59:37","modified_gmt":"2026-04-30T19:59:37","slug":"does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models","status":"publish","type":"post","link":"https:\/\/versimarket.com\/blog\/does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models\/","title":{"rendered":"Does NetSuite Fixed Asset Module Operate on IAS 16 Designated Models?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/versimarket.com\/blog\/does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models\/#What_is_IAS_16\" >What is IAS 16?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/versimarket.com\/blog\/does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models\/#Accounting_Models_Utilized_in_IAS_16\" >Accounting Models Utilized in IAS 16<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/versimarket.com\/blog\/does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models\/#Cost_Model\" >Cost Model<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/versimarket.com\/blog\/does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models\/#Revaluation_Model\" >Revaluation Model<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/versimarket.com\/blog\/does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models\/#Are_these_Models_Supported_by_Oracle_NetSuite\" >Are these Models Supported by Oracle NetSuite?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/versimarket.com\/blog\/does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models\/#Fixed_Asset_Management_in_Oracle_NetSuite\" >Fixed Asset Management in Oracle NetSuite<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/versimarket.com\/blog\/does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models\/#Cost_Model_in_Oracle_NetSuite\" >Cost Model in Oracle NetSuite<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/versimarket.com\/blog\/does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models\/#Treatment_in_Income_Statement_and_Balance_Sheet\" >Treatment in Income Statement and Balance Sheet:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/versimarket.com\/blog\/does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models\/#Revaluation_Model_in_Oracle_NetSuite\" >Revaluation Model in Oracle NetSuite<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/versimarket.com\/blog\/does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models\/#Treatment_in_Income_Statement_and_Balance_Sheet-2\" >Treatment in Income Statement and Balance Sheet:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/versimarket.com\/blog\/does-netsuite-fixed-asset-module-operate-on-ias-16-designated-models\/#Disclosures\" >Disclosures<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_IAS_16\"><\/span><strong>What is IAS 16?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>IAS 16<\/strong> refers to the International Accounting Standard 16, which outlines the accounting practices governing Property, Plant, and Equipment. This standard encompasses all considerations for costs, disposal, depreciation, and revaluation of any assets falling under the criteria for Property, Plant, and Equipment, excluding those covered by subsequent accounting standards for specific assets. For example, IAS 41 addresses biological assets used in agriculture and is not applicable under IAS 16.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Accounting_Models_Utilized_in_IAS_16\"><\/span><strong>Accounting Models Utilized in IAS 16<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Cost_Model\"><\/span><strong>Cost Model<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The asset is recorded at cost minus depreciation and impairment. It follows the original asset cost throughout its lifespan.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Revaluation_Model\"><\/span><strong>Revaluation Model<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The asset is accounted for at revalued amounts. This reflects the fair value at the time of revaluation, adjusted by depreciation and impairment. The asset&#8217;s value is influenced by market factors affecting pricing.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Are_these_Models_Supported_by_Oracle_NetSuite\"><\/span><strong>Are these Models Supported by Oracle NetSuite?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Yes. Both Cost and Revaluation Models are integrated into the Oracle NetSuite Fixed Assets Management Module. The principles of recognition and accounting for Plant, Property, and Equipment can be effectively implemented using the NetSuite ERP System.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Fixed_Asset_Management_in_Oracle_NetSuite\"><\/span><strong>Fixed Asset Management in Oracle NetSuite<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Fixed Asset Management within NetSuite automates the management of asset acquisition, depreciation, revaluation, retirement, as well as maintenance schedules and insurance. It also accommodates mid-life assets that can be imported into NetSuite. A fixed asset in NetSuite can be generated from Purchases, Expenses, and Inventory Transfers.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cost_Model_in_Oracle_NetSuite\"><\/span><strong>Cost Model in Oracle NetSuite<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cost Model in Oracle NetSuite = Initial Asset Cost + Installation Cost Incurred &#8211; Accumulated Depreciation as per the attached schedule.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Treatment_in_Income_Statement_and_Balance_Sheet\"><\/span><strong>Treatment in Income Statement and Balance Sheet:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Initial Asset Cost and Installation Services = Asset<\/li>\n<li>Depreciation on the Asset for the Year = Expense<\/li>\n<li>Accumulated Depreciation Calculated over several years = Liabilities<\/li>\n<li>Disposal of Asset = Income<\/li>\n<li>Gain\/Loss is a result of Cost &#8211; Disposal = Income\/Expense<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Revaluation_Model_in_Oracle_NetSuite\"><\/span><strong>Revaluation Model in Oracle NetSuite<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Revaluation Model aligns with IAS 16, maintaining all concepts from the Cost Model. Typically, asset cost diminishes over time; however, under the Revaluation Model, asset prices may increase if market conditions dictate.<\/p>\n<p><strong>Revaluation Model in Oracle NetSuite = Fair Value as updated in NetSuite &#8211; Accumulated Depreciation as per the attached schedule.<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Treatment_in_Income_Statement_and_Balance_Sheet-2\"><\/span><strong>Treatment in Income Statement and Balance Sheet:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Initial Asset Cost and Installation Services = Asset<\/li>\n<li>Depreciation on the Asset for the Year = Expense<\/li>\n<li>Accumulated Depreciation Calculated over several years = Liabilities<\/li>\n<li>Disposal of Asset = Income<\/li>\n<li>Gain\/Loss is a result of Cost &#8211; Disposal = Income\/Expense<\/li>\n<li>Gain\/Loss from Revaluation = Income\/Expense<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Disclosures\"><\/span><strong>Disclosures<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>IAS 16 specifies reporting and disclosure requirements, which can be managed through customized reports and saved searches in NetSuite. Disclosure notes can also be enhanced using NetSuite Saved Searches to cover all mandatory disclosures necessary to adhere to IAS 16 standards. Therefore, the accounting models implemented in Oracle NetSuite align well with international accounting standards, ensuring consistency with global benchmarks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is IAS 16? IAS 16 refers to the International Accounting Standard 16, which outlines the accounting practices governing Property, Plant, and Equipment. This standard encompasses all considerations for costs, disposal, depreciation, and revaluation of any assets falling under the criteria for Property, Plant, and Equipment, excluding those covered by subsequent accounting standards for specific assets. For example, IAS 41 addresses biological assets used in agriculture and is not applicable under IAS 16. Accounting Models Utilized in IAS 16 Cost Model The asset is recorded at cost minus depreciation and impairment. It follows the original asset cost throughout its lifespan. Revaluation Model The asset is accounted for at revalued amounts. This reflects the fair value at the time of revaluation, adjusted by depreciation and impairment. The asset&#8217;s value is influenced by market factors affecting pricing. Are these Models Supported by Oracle NetSuite? Yes. Both Cost and Revaluation Models are integrated into the Oracle NetSuite Fixed Assets Management Module. The principles of recognition and accounting for Plant, Property, and Equipment can be effectively implemented using the NetSuite ERP System. Fixed Asset Management in Oracle NetSuite Fixed Asset Management within NetSuite automates the management of asset acquisition, depreciation, revaluation, retirement, as well as maintenance schedules and insurance. It also accommodates mid-life assets that can be imported into NetSuite. A fixed asset in NetSuite can be generated from Purchases, Expenses, and Inventory Transfers. Cost Model in Oracle NetSuite Cost Model in Oracle NetSuite = Initial Asset Cost + Installation Cost Incurred &#8211; Accumulated Depreciation as per the attached schedule. Treatment in Income Statement and Balance Sheet: Initial Asset Cost and Installation Services = Asset Depreciation on the Asset for the Year = Expense Accumulated Depreciation Calculated over several years = Liabilities Disposal of Asset = Income Gain\/Loss is a result of Cost &#8211; Disposal = Income\/Expense Revaluation Model in Oracle NetSuite The Revaluation Model aligns with IAS 16, maintaining all concepts from the Cost Model. Typically, asset cost diminishes over time; however, under the Revaluation Model, asset prices may increase if market conditions dictate. Revaluation Model in Oracle NetSuite = Fair Value as updated in NetSuite &#8211; Accumulated Depreciation as per the attached schedule. Treatment in Income Statement and Balance Sheet: Initial Asset Cost and Installation Services = Asset Depreciation on the Asset for the Year = Expense Accumulated Depreciation Calculated over several years = Liabilities Disposal of Asset = Income Gain\/Loss is a result of Cost &#8211; Disposal = Income\/Expense Gain\/Loss from Revaluation = Income\/Expense Disclosures IAS 16 specifies reporting and disclosure requirements, which can be managed through customized reports and saved searches in NetSuite. Disclosure notes can also be enhanced using NetSuite Saved Searches to cover all mandatory disclosures necessary to adhere to IAS 16 standards. Therefore, the accounting models implemented in Oracle NetSuite align well with international accounting standards, ensuring consistency with global benchmarks.<\/p>\n","protected":false},"author":9,"featured_media":1985,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"q:1_question":"","q:1_answer":"","q:2_question":"","q:2_answer":"","q:3_question":"","q:3_answer":"","q:4_question":"","q:4_answer":"","q:5_question":"","q:5_answer":"","q:6_question":"","q:6_answer":"","q:7_question":"","q:7_answer":"","q:8_question":"","q:8_answer":"","q:9_question":"","q:9_answer":"","q:10_question":"","q:10_answer":"","source_url":"https:\/\/odecloud.com\/does-netsuite-fixed-asset-module-run-on-ias-16-models\/","footnotes":""},"categories":[51,23],"tags":[],"class_list":["post-1968","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-accounting","category-netsuite"],"acf":[],"_links":{"self":[{"href":"https:\/\/versimarket.com\/blog\/wp-json\/wp\/v2\/posts\/1968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/versimarket.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/versimarket.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/versimarket.com\/blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/versimarket.com\/blog\/wp-json\/wp\/v2\/comments?post=1968"}],"version-history":[{"count":1,"href":"https:\/\/versimarket.com\/blog\/wp-json\/wp\/v2\/posts\/1968\/revisions"}],"predecessor-version":[{"id":1986,"href":"https:\/\/versimarket.com\/blog\/wp-json\/wp\/v2\/posts\/1968\/revisions\/1986"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/versimarket.com\/blog\/wp-json\/wp\/v2\/media\/1985"}],"wp:attachment":[{"href":"https:\/\/versimarket.com\/blog\/wp-json\/wp\/v2\/media?parent=1968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/versimarket.com\/blog\/wp-json\/wp\/v2\/categories?post=1968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/versimarket.com\/blog\/wp-json\/wp\/v2\/tags?post=1968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}