Using the cost model outlined in AASB 116 to measure property,plant and equipment at acquisition,which of the following costs would not be included?
A) directly attributable costs
B) initial estimates of dismantling and removal costs
C) 12-month servicing plan
D) purchase price

Question

Quizplus · Accepted Answer

According to AASB 116, costs that can be included in the initial measurement of property, plant, and equipment include directly attributable costs, initial estimates of dismantling and removal costs, and purchase price. A 12-month servicing plan, however, is not a cost that can be included in the initial measurement of property, plant, and equipment.

Using the Cost Model Outlined in AASB 116 to Measure