Asked by Avelina Milam on May 02, 2024
Verified
AASB 116 requires which of the following disclosures for each class of property, plant and equipment?
A) The type of deprecation methods used.
B) The useful lives or the depreciation rates used.
C) Whether the class of assets is valued using the cost or revaluation method.
D) All of the options are correct.
AASB 116
Australian Accounting Standards Board 116 pertains to Property, Plant, and Equipment, outlining the accounting treatment for most types of property, plant, and equipment.
Depreciation Methods
These are systematic ways of allocating the cost of a tangible asset over its useful life. Examples include straight-line and declining balance methods.
Useful Lives
The period over which an asset is expected to be usable by an organization, reflecting its anticipated period of economic benefit.
- Investigate the disclosure mandates for property, plant, and equipment within the pertinent accounting standards.
Verified Answer
KT
Kirsten TerryMay 07, 2024
Final Answer :
D
Explanation :
AASB 116 requires all of the options listed - disclosure of deprecation methods used, useful lives or depreciation rates used, and whether the class of assets is valued using the cost or revaluation method - for each class of property, plant and equipment.
Learning Objectives
- Investigate the disclosure mandates for property, plant, and equipment within the pertinent accounting standards.