I know the answer to the problem but please tell me what IAS standard covers thi
ID: 2521862 • Letter: I
Question
I know the answer to the problem but please tell me what IAS standard covers this problem
6.A Limited bought a special bread-mak follow: d-making plant on 1 January 20X1, details of which Purchase price (including VAT of 14%) Import duties - non-refundable Installation costs Fuel (incurred when transporting the plant to th Administration costs Staff party to celebrate the acqu Staff training Testing to ensure plant fu Proceeds from sale of samples and porting the plant to the factory) Party to celebrate the acquisition of the new plant 570 000 100 000 30 000 45 000 10 000 14 000 12 000 10 980 13 000 50 000 35 000 27 020 y to ensure plant fully operational before start of production from sale of samples and by-products made during testing Advertising of the 'special bread' to be made by the new pla Initial operating loss Estimated costs of dismantling/ removal lire (future amount payable of $70.031 present valued at a discount rate of 10%) be made by the new plant t the end of its useful The initial operating loss was inc Itial operating loss was incurred as a result of having to dump unsold 'special ved at sea since the advertising had not yet created sufficient demand. The company is registered as a 'VAT vendor'. Required: Calculate the cost to be capitalized to the plant account.Explanation / Answer
Internation Accounting Standard 16- Property, Plant and Equipments covers how propert, plant and equipment are measured. You can find the Elements of Cost under IAS-16 which covers all the items stated in question