The cost of property, plant and equipment is only recognised if the cost of the asset can be reliably measured and:

Question

Quizplus · Accepted Answer

The cost of property, plant and equipment is only recognised if it is probable that future economic benefits associated with the asset will flow to the entity. This is in accordance with the IFRS framework, which requires entities to recognise assets only when it is probable that future economic benefits will flow to the entity and the cost of the asset can be reliably measured. Payment in cash or receipt of the asset by the purchaser are important, but they alone do not determine whether the cost of the asset can be reliably measured or whether future economic benefits will flow to the entity. Similarly, cost being directly attributable to the asset has no bearing on whether the asset should be recognised or not.

The Cost of Property, Plant and Equipment Is Only Recognised