Reference no: EM133147973

Question -

i) Define the term "property, plant and equipment"

ii) Discuss TWO criteria that must be satisfied for an item of property, plant, and equipment to be recognized under FRS 116 and when should the criteria be applied.

iii) When should an item of property, plant and equipment be recognized as an asset and when should it be derecognized?

iv) Which of the following costs should be included in the initial cost of an item of property, plant and equipment?

- purchase price of the item

- import duties incurred related to the item

- small spare parts for the item

- delivery charges

- cost of maintenance contract

- non-refundable purchase taxes related to the item