Plant acquired with either unrestricted or restricted resources may be (1) recorded initially as unrestricted OR (2) recorded initially as temporarily restricted and then classified in accordance with the depreciation schedule.

Question

Quizplus · Accepted Answer

It is true that plant acquired with either unrestricted or restricted resources may be recorded initially as unrestricted or temporarily restricted and then reclassified in accordance with the depreciation schedule. This decision is based on the organization's accounting policies and the nature of the resources used to acquire the asset.

Plant Acquired with Either Unrestricted or Restricted Resources May Be