(a) Define the term property, plant and equipment. (b) When should an item of PPE be recognised...

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(a) Define the term ‘property, plant and equipment’. 

(b) When should an item of PPE be recognised as an asset and when should it be derecognised? 

(c) Which of the following costs should be included in the cost of an item of PPE at initial recognition? 

• purchase price of the item; 

• import duties incurred in relation to the item; e delivery charges; e minor spare parts for the item

• cost of a maintenance contract; 

• non-refundable purchase taxes relating to the item.

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