Additions and improvements:
A) occur frequently during the ownership of a plant asset.
B) should be capitalised and depreciated over the remaining useful life of the related PPE asset.
C) normally involve immaterial expenditures.
D) typically only benefit the current accounting period.

Question

Quizplus · Accepted Answer

Additions and improvements increase the efficiency, productive capacity or useful life of a PPE asset. They are usually material in amount and occur infrequently during the life of the asset.

Additions and Improvements