3Pursuant to NZ IAS 16, if an item of Property, Plant and Equipment qualifies as an asset it must be recognised initially at cost. Describe what are included in such costs.

11Using the definition criteria of an asset and of an expense, discuss whether an entity that uses a perpetual inventory system should recognise inventory as an asset or as an expense or as both. Justify your arguments.

12Discuss the purpose of conducting physical inventory counts (i.e. stock counts) when using both the period and the perpetual inventory systems to account for inventory.

17In accordance with NZ IFRS 16, describe who the lessee and who the lessor are in a lease agreement.