Question
Explain whether each of the following asset meets the recognition criteria of IAS 16 Property, plant & equipment? An equipment was bought by YY Global
Explain whether each of the following asset meets the recognition criteria of IAS 16 Property, plant & equipment?
An equipment was bought by YY Global to be used in its manufacturing process. The equipment can be used for 5 years.
YY Global trades in machining. On 1 January 20X9, YY Global decided to acquire some machine to enable them to expand their manufacturing process. On 1 February a further 5 machines was acquired but this machines is to meet the demand for one of their customer.
ABC Bhd has a machine that they are currently using for manufacturing. However during to the economic slowdown the machine is longer in use as it is surplus to requirement. Management of ABC Bhd has decided that the machine will not be used anymore. The machine could not be sold as well as it has no buyer.
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