![]() Therefore the initial measurement of PPE cost depends upon the way such PPE is acquired. ![]() PPE may be acquired by way of purchase, self-construction, or exchange with any other asset. Initial measurement would mean how the PPE would be recognized for the first time in the books of accounts. The cost of an item of property, plant, and equipment will be equal to cash price equivalent at the date of recognition. Accounting Standard 10 lays down the principles related to recognition of PPE, measurement of carrying amounts initially & subsequently, a charge of depreciation, revaluation thereon, and derecognition of PPE.Īn item of Property, Plant, and Equipment (PPE) that qualifies for recognition as an asset shall be measured at its cost. ![]() Property, Plant, and Equipment (PPE) are fixed assets that are used in business to generate revenue. Subsequent Measurement when PPE is Held for Sale.
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