An entity must measure its Property, Plant and Equipment after initial recognition at,
A)Cost
B)Cost less accumulated depreciation and impairment losses if any
C)Cost less accumulated depreciation and impairment losses if any including cost of day to day servicing
D)None of the above

Question

Quizplus · Accepted Answer

After initial recognition, Property, Plant, and Equipment (PPE) should be measured at cost less accumulated depreciation and any impairment losses. This reflects the wear and tear, usage, and aging of the asset over time, as well as any decline in its recoverable amount. Day-to-day servicing costs are typically recognized as expenses when incurred and do not reduce the carrying amount of PPE.

An Entity Must Measure Its Property, Plant and Equipment After