alleryStart learning →Under the cost model, how is an item of PPE carried after recognition?
AAt fair value with no depreciation
BAt replacement cost each year
CAt cost less impairment only
DAt cost less depreciation and impairment
Answer & Solution
Correct answer: D. At cost less depreciation and impairment
The cost model deducts both accumulated depreciation and accumulated impairment losses from cost.
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