The cost of property, plant and equipment is only recognised as an asset if it is probable that the future economic benefits will flow to the entity and:

Question

Quizplus · Accepted Answer

The cost of property, plant and equipment can only be recognised as an asset if the cost can be reliably measured, as stated in the International Accounting Standards (IAS) 16. Other options such as physical asset, payment method or delivery to buyer do not determine the recognition of an asset.

The Cost of Property, Plant and Equipment Is Only Recognised