CAF-1 · Chapter 3 · Question 5 of 15
When an item of property, plant, and equipment is initially recognized, how should it be measured?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) At cost.
Explanation
Items of property, plant, and equipment are initially measured and recorded at cost.
More IAS 16 Property, Plant and Equipment MCQs
- Q7If an entity acquires a new asset in exchange for an old asset, and the transaction has commercial substance, how is the new asset measured?
- 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: