The cost of property,plant and equipment is only recognised as an asset if it is probable that the future economic benefits will flow to the entity and if:

Question

Quizplus · Accepted Answer

The recognition of property, plant and equipment as an asset is not solely dependent on payment or receipt of the asset. Instead, it requires the probability of future economic benefits and that the cost of the asset can be reliably measured. These factors are essential to ensure the accuracy and usefulness of financial statements.

The Cost of Property,plant and Equipment Is Only Recognised as an Asset