CAF-1 · Chapter 3 · Question 6 of 15
Which of the following costs is explicitly EXCLUDED from the cost of an item of PPE?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Costs of conducting business in a new location, such as staff training.
Explanation
Costs of conducting business in a new location, including staff training, are not included in the cost of PPE and must be expensed.
More IAS 16 Property, Plant and Equipment MCQs
- Q8How should an entity account for a major inspection or overhaul of an item of PPE?
- Q9Under the revaluation model, how frequently should revaluations be made?
- Q10If an asset's carrying amount is decreased as a result of an initial revaluation, how is this decrease treated?
- Q11A change in the depreciation method applied to an asset is accounted for as:
- Q12Under IAS 16, which of the following is NOT a required disclosure for each class of PPE?