Q:
|
When is the property, plant and equipment should be recognised as asset?
|
A:
|
Property, plant and equipment shall be recognised as asset when it is probable that the future economic benefits associated with the asset will flow to the entity and the cost of the asset can be measure reliably. The recognition of the property, plant and equipment shall apply to all cost incurred and at the time that they incurred.
|
Q:
|
What is the basis of initial measure the value of property, plant, and equipment?
|
A:
|
Property, plant and equipment shall be initially measured at cost. Cost shall include all costs necessary to bring the asset to working condition, which is not only the purchase price but also the cost such as delivery and handling charges, installation fee, related agency fee and so on.
|
Q:
|
How to measure the subsequent to initial recognition of property, plant, and equipment?
|
A:
|
Cost model and revaluation model are allowed to measure the subsequent to initial recognition of property, plant, and equipment.
|
Q:
|
What is cost model?
|
A:
|
Cost model is measuring the asset at cost less accumulated depreciation and impairment.
|
Q:
|
What is revaluation model?
|
|
A:
|
Revaluation model is measuring the asset at a revalued amount, bring its fair value at the date of revaluation less subsequent depreciation and impairment, provided that fair value can be measured reliably.
|
Laman Utama
Soalan Lazim
SOALAN LAZIM
