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CMA Final · Corporate Financial Reporting · Property, Plant and Equipment (Ind AS 16)

Which of the following items is property, plant and equipment under the Ind AS 16 definition?

A tangible item held for administrative purposes and expected to be used for more than one period is PPE under Ind AS 16. Items for sale, intangibles and items used within one period do not meet the definition.

  1. AA tangible item held for administrative purposes and expected to be used during more than one periodCorrect
  2. BA tangible item held for sale in the ordinary course of business
  3. CAn intangible licence used for more than one period
  4. DA tangible item expected to be used for less than one period

Explanation

PPE are tangible items held for production or supply of goods or services, for rental to others or for administrative purposes, and expected to be used during more than one period. Items held for sale are inventory, intangibles are not tangible, and short-use items fail the more-than-one-period test.

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