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Under AS 10, the cost of an item of property, plant and equipment comprises its purchase price and which of the following?
AAll administrative and general overhead costs incurred
BDirectly attributable costs and the dismantling estimate
CFuture repair, servicing and maintenance costs
DExpected initial operating losses before output
Answer & Solution
Correct answer: B. Directly attributable costs and the dismantling estimate
1. AS 10 defines cost as purchase price (net of trade discounts/rebates) plus directly attributable costs to bring the asset to working condition.
2. It also includes the initial estimate of dismantling/restoration obligations.
3. General overheads, future repairs and initial operating losses are not part of cost.
_Source: ICAI BoS CA Intermediate Paper 1 (Advanced Accounting), Sept 2025 MCQ — Q.9, AS 10 Property, Plant & Equipment._
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