What is the criterion a company uses to decide whether to include an expenditure in the cost of property, plant,and equipment rather than expensing it? Give an example of the types of expenditures that are included in the cost of property, plant and equipment as a result of the application of this criter
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What is the criterion a company uses to decide whether to include an expenditure in the cost of property, plant,and equipment rather than expensing it? Give an example of the types of expenditures that are included in the cost of property, plant and equipment as a result of the application of this criterion
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- asap What is the criterion a company uses to decide whether to include an expenditure in the cost of property, plant,and equipment rather than expensing it? Give an example of the types of expenditures that are included in the cost of property, plant and equipment as a result of the application of this criterionWhat is the criterion a company uses to decide whether to include an expenditure in the cost of property, plant,and equipment rather than expensing it? Give an example of the types of expenditures that are included in the cost of property, plant and equipment as a result of the application of this criterionWhich of the following is considered capital expenditure Select one: a. Research expenses. b. Purchase of office consumables. c. Cost of material to construct new plant. d. Staff overtime.
- Property Plant Equipment will be classified at year end at what amount? "Apply PAS 36" Historical Cost Cost Lower of Cost or Net Realizable Value Carrying ValueWhich of the following items should be accounted for as a capital expenditure?a. The monthly rental cost of an office buildingb. Costs incurred to repair leaks in a building’s roofc. Maintenance fees paid with funds provided by the company’s capitald. Taxes paid in conjunction with the purchase of office equipmentIf a company constructs a laboratory building to be used as a research and development facility, the cost of the laboratory building is matched against earnings as a. research and development expense in the period(s) of construction. b. depreciation deducted as part of research and development costs. c. depreciation or immediate write-off depending on company policy. d. an expense at such time as productive research and development has been obtained from the facility.
- Estimate the average total estimated useful life of depreciable property, plant, and equipment. Does the estimate reconcile with stated accounting policy on useful lives for property, plant, and equipment?44 The cost of internally generated intangible asset comprises all expenditures that can be directly attributed to creating, producing and preparing the asset for its intended use. Which of the following should not form part of the cost of internally generated intangible asset? a. salaries and wages of personnel directly engaged in generating the asset. b. expenditures that are directly attributable to generating the asset, such as registration fees. c. expenditures on training the staff to operate the asset. d. expenditures on materials and services used or consumed in generating the asset.The critical issues in accounting for tangible assets are recognising cost incurred as an expense or an asset and the measurement of initial costs and subsequent expenditure. MFRS 116 Property, Plant and Equipment provide guidance on these critical issues. Please give explanation in details and example
- Identify which of the following expenditures is considered as a capital expenditure that must be capitalized (depreciated):(a) Purchase land to build a warehouse at $300,000.(b) Purchased a copy machine at $15,000.(c) Installed a conveyor system at a cost of $55,000 to automate some part of production processes.(d) Painted the office building, both interior and exterior, at a cost of $22,000.( e) Repaved the parking lot at a cost of $25,000.(f) Installed a purified water fountain in the employee lounge at a cost of$3,000.(g) Purchased a spare part for a stamping machine at a cost of $3,800.(h) Paid $12,000 to lease a dump truck for six months.(i) Purchased a patent on an energy-saving device over five years at a cost of $30,000.What is the depreciation expense on the factory building to be reported for 20x1? What is the grant income to be reported for 20x1? * What is the loss to be recognized resulting from the repayment of the grant in 20x3?Assume that the capital expenditures to replace and upgrade the production equipment areas given in the original exercise, but that the production and sales quantity is not known. Forwhat production and sales quantity would SS (i) upgrade the equipment or (ii) replace the equipment?