PILAK Mining Company has a copper mine in Marinduque. The company is subject to the pronouncements of the International Accounting Standards Board, and, specifically, IFRS 16. The plant and equipment used in this operation were acquired five years ago for P1,600,000 and have been depreciated using straight-line depreciation over a 20-year life. The controller estimates that the assets have a remaining useful life of 15 years. The controller of the company is preparing the financial statements for the year just ended and notes that the fair value of the plant and equipment is estimated to be P1,300,000 at the close of last year. Prepare the entry (if any) the controller should make under IFRS 16 relating to the current fair value of the plant & equipment. Additionally, assume that the company sold the plant & equipment for P1,300,000 immediately after the end of last уcar. Prepare the entry (if any) required under IFRS 16.

PILAK Mining Company has a copper mine in Marinduque. The company is subject to the pronouncements of the International Accounting Standards Board, and, specifically, IFRS 16. The plant and equipment used in this operation were acquired five years ago for P1,600,000 and have been depreciated using straight-line depreciation over a 20-year life. The controller estimates that the assets have a remaining useful life of 15 years. The controller of the company is preparing the financial statements for the year just ended and notes that the fair value of the plant and equipment is estimated to be P1,300,000 at the close of last year. Prepare the entry (if any) the controller should make under IFRS 16 relating to the current fair value of the plant & equipment. Additionally, assume that the company sold the plant & equipment for P1,300,000 immediately after the end of last уcar. Prepare the entry (if any) required under IFRS 16.

Name: PILAK Mining Company has a copper mine inMarinduque. The company is s
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Description: PILAK Mining Company has a copper mine inMarinduque. The company is subject to the pronouncementsof the International Accounting Standards Board, and,specifically, IFRS 16.The plant and equipment used in this operation wereacquired five years ago fo

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...

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