BSB110 Lecture Notes - Lecture 10: European Cooperation In Science And Technology, Book Value, Intangible Asset
Document Summary
Property, plant and equipment (ppe) are physical assets used in the business to provide future economic benefits for a number of years. According to aasb 116/ias 16, economic benefits derived from the use of an asset must be recognised on a systematic basis over the asset"s useful life. This decline is recognised as depreciation expense in the statement of profit or. There are two classes of ppe assets: property (land and buildings, plant and equipment (computers, furniture, cash registers, factory machinery) Ppe assets are initially recorded at cost in accordance with aasb 116, para 6 as: The amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire the asset. Fair value is the amount for which an asset could be exchanged between knowledgeable willing parties in an arm"s-length transaction. Consists of the fair value of all expenditure necessary to acquire the asset and make it ready for use:
