The depreciation charge for each period is recognized as an expense in profit or loss, unless it is included in the carrying amount of another asset.

Question

Quizplus · Accepted Answer

Depreciation is typically recognized as an expense in the profit or loss statement, except when it is capitalized as part of the cost of another asset, reflecting its use in the production of that asset.

The Depreciation Charge for Each Period Is Recognized as an Expense