The general recognition principle is that the cost of an item of PP&E is recognized as an asset if, and only if:

Question

Quizplus · Accepted Answer

The general recognition principle for property, plant, and equipment (PP&E) requires that the cost of an item is recognized as an asset if it is probable that future economic benefits associated with the item will flow to the entity (A) and the cost of the item can be reliably measured (C). These criteria ensure that the asset provides economic benefits and its value can be accurately determined.

The General Recognition Principle Is That the Cost of an Item