IAS 16 property plant and equipment Flashcards

1
Q

What costs can be included in the initial measurement of PPE?

A

All costs directly attributable to bringing the asset into working condition for its intended use.
Eg. direct labour costs, delivery costs, legal fees and testing costs.

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2
Q

In what situation can subsequent expenditure on an asset be capitalised?

A

If it enhances the economic benefits in excess of its previously assessed standard of performance.

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