3.19 LO3/4 For property, plant and equipment, the following expenses can be observed in the income statement

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3.19 LO3/4 For ‘property, plant and equipment’, the following expenses can be observed in the income statement or attached notes:

• depreciation of equipment

• write-down of equipment to fair value

• write-down of equipment to recoverable amount (impairment)

• carrying amount of equipment sold

• immediate expensing of equipment purchased.

(a) Explain the difference between these ‘expenses’.

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Accounting For Business Students

ISBN: 9781488616570

1st Edition

Authors: Peter Atrill, Eddie Mclaney, David Harvey

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