Property, Plant & Equipment (PPE) - IAS 16 All you need to know under IAS 16

[@issakaharuna5720]

Thank you sir, please how can you treat this information under PPE.
Certain direct expenditure was incurred, however the exact amount could not be established. It was certainly not below ghc11500 but could be as much as ghc19500.
Please Sir I need your help.
Haruna student of UDS

[@ronasacademy]

Will the expenditure increase the useful life of the asset or improve upon its economic benefits? If Yes, then you could record the estimated cost as a range between GHC 11,500 and GHC 19,500, with a footnote or explanation indicating that the exact amount could not be established.
Alternatively, if the purpose of the PPE records is to track actual costs, you may need to perform further investigation to determine the exact amount spent. This could involve reviewing purchase orders, invoices, receipts, or other documentation related to the acquisition or maintenance of the PPE asset. If No, it value should be considered as mere repair and maintenance cost. Thank you.

[@issakaharuna5720]

Thanks you sir.
Am not this is the full questions.
KK and Sons company Ltd Real Estate company construct its administrative building on 1st January 2018 and incured the the following cost.
Feasibility study. 2300
Land. 80000
Water. 17500
Cost of relocating staff 68000
Materials cost. 55000
Labor. 91000
Cost of roofing. 72000
Additional information:
a. There was leakage in water tank and that resulted in an abnormal amount of the wastage amounting to ghc2800.
b. Kk and son have realized that it incured certain direct expenditure on the project. However the exact amount could not be established. It was certainly not below ghc11500 but could be as much as ghc19500.
Required:
Calculate the initial amount to be recognized as at 1st January, 2018.
Thank you sir counting on you.
Much grateful for your good work.

[@issakaharuna5720]

I mean am not clear with the explanation.

[@issakaharuna5720]

Please sir am still waiting the b part of the question n will feasibility be capitalized or not, I beg I have exams on it today 7am. Please help me.

[@ronasacademy]

@@issakaharuna5720 Sorry Haruna, I'm just seeing your comment. Kindly direct email me next time.

[@albertjuniormensah5874]

Sir you're doing everything... Thanks so much

[@ronasacademy]

It's my pleasure

[@michaelkpende9545]

Great content

[@felicityaidoo-lo1rf]

Thanks very much

[@luckyntem4534]

Thnaks sir

[@albertntem9181]

Very interesting

[@ebenezerwilson7345]

Easy to understand.

[@ronasacademy]

Thanks...please never forget to SHARE,and SUBSCRIBE

[@danieldrinkbeer5204]

nice presentation

[@ronasacademy]

Thank you! Cheers!

[@p.o_naturales96]

Thank you 🙏🏻