Current accounting practice in Australia is to initially record property, plant and equipment at:
A) economic value.
B) cost.
C) net realisable value.
D) replacement cost.

Question

Quizplus · Accepted Answer

The current accounting practice in Australia is to initially record property, plant and equipment at cost. This means that the asset is recorded at its historical cost, including any costs necessary to bring it to its present location and condition for its intended use. This approach provides a reliable and verifiable measure of the asset's value and is consistent with the historical cost principle of accounting. It also enables comparability between entities and helps to avoid subjective assessments of the asset's economic value, net realisable value or replacement cost.

Current Accounting Practice in Australia Is to Initially Record Property