BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -MFRS 116 Property, Plant and EquipmentMFRS 116 are tangible asset that are held for use in the production or supply of goods orservices, for rental to others, for administritive purposes and are expected to be used duringmore than one period.

Detailed explanation-2: -The cost of an asset that comes under Property, Plant and Equipment as per AS 10 is identified as an asset only if: The future economic benefits expected to arise from such an asset would come to the business entity.

Detailed explanation-3: -The amendments to MFRS 116 restrict an entity from deducting from the cost of an item of PPE any proceeds from selling items generated while making that item of PPE available for its intended use, such as during a necessary testing or commissioning period.

Detailed explanation-4: -The objective of IAS 16 is to prescribe the accounting treatment for property, plant, and equipment. The principal issues are the recognition of assets, the determination of their carrying amounts, and the depreciation charges and impairment losses to be recognised in relation to them.