One of the biggest issues related to property, plant and equipment is accounting for spare parts, servicing equipment, stand-by equipment and similar items.Ifrs standards are pretty silent about this topic, the guidance is very limited and as a result, companies need to rely on careful assessment of the situation and their judgment.
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How much do you depreciate an asset and when depreciation begins when you place an asset in service and it ends when you take an asset out of service or when you have expensed its cost, whichever comes first.For financial statements, you are guided by the matching principle.The objective is to match the cost of the asset to the accounting periods in which revenues were earned by using the.Read More
A consumable item is a term for a small everyday item in accounting.Theyre posted as a day-to-day running cost, reducing profit in the profit and loss account.You are currently viewing our locale site.For more relevant information select a location from the drop down or dismiss to continue browsing.Read More
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