Asset Use – Knowsia

FA – May 2022 – L1 – SA – Q10 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Identify when depreciation should commence for an asset purchased and stored before use.

Question

An equipment was paid for on January 16, 2015, delivered on January 16, 2016, kept in store till January 16, 2017, commissioned on January 16, 2018, and put into use on January 16, 2019. The entity’s accounting date is December 31. Which date should depreciation commence on this equipment?

A. January 16, 2015
B. January 16, 2016
C. January 16, 2017
D. January 16, 2018
E. January 16, 2019

Answer

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Tags: Asset Use, Depreciation, Financial Reporting
Level: Level 1

Topic: Accounting for Property, Plant, and Equipment (PPE) IAS 16
Series: MAY 2022

Question Tag: Asset Use

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FA – May 2022 – L1 – SA – Q10 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Identify when depreciation should commence for an asset purchased and stored before use.

FA – May 2022 – L1 – SA – Q10 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Identify when depreciation should commence for an asset purchased and stored before use.

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FA – May 2022 – L1 – SA – Q10 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Identify when depreciation should commence for an asset purchased and stored before use.

You're reporting an error for "FA – May 2022 – L1 – SA – Q10 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16"

FA – May 2022 – L1 – SA – Q10 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Identify when depreciation should commence for an asset purchased and stored before use.

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