Yakub02
Banned
Property, plant and equipment (PPE)
Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other IFRSs.
(For example right of use assets accounted for according to rules in IFRS 16: Leases). Property, plant and equipment are initially recorded in the accounts of a business at their cost
Elements of cost The cost of an item of property, plant and machinery consists of:
its purchase price after any trade discount has been deducted, plus any import taxes or non-refundable sales tax; plus
the directly attributable costs of bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management; and
When the entity has an obligation to dismantle and remove the asset at the end of its life, its initial cost should also include an estimate of the costs of dismantling and removing the asset and restoring the site where it is located.
The recognition of costs ceases when the asset is ready for use. This is when it is in the location and condition necessary for it to be capable of operating in the manner intended by management
Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other IFRSs.
(For example right of use assets accounted for according to rules in IFRS 16: Leases). Property, plant and equipment are initially recorded in the accounts of a business at their cost
Elements of cost The cost of an item of property, plant and machinery consists of:
its purchase price after any trade discount has been deducted, plus any import taxes or non-refundable sales tax; plus
the directly attributable costs of bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management; and
When the entity has an obligation to dismantle and remove the asset at the end of its life, its initial cost should also include an estimate of the costs of dismantling and removing the asset and restoring the site where it is located.
The recognition of costs ceases when the asset is ready for use. This is when it is in the location and condition necessary for it to be capable of operating in the manner intended by management
