Property, plant And Equipment

Question 1

Does depreciation always get expensed?

Answer 1

• normally it goes to the expense section of the statement of profit and loss
• but if it gets added into overheads and then allocated to the cost of inventory, then it might not end up in profit and loss right away but only when the inventory gets sold

Question 2

Should a revaluation/impairment always be recognised in Other comprehensive income?

Answer 2

if it gets revalued above the historical cost amount, then it goes into OCI but if it is impaired(negative revaluation) below the historical cost amount, it will be passed through profit and loss, until it passes apbe the historical cost figure then adjustments will be in other comprehensive income again