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Property, plant and equipment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Property, plant and equipment

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • August 29, 2016 at 9:14 am #335927
    tayyabumer
    Participant
    • Topics: 7
    • Replies: 7
    • ☆

    In a question, I was given timber land $ 71000 and land $72000 and many other items. I was to put them under heading of PP&E. But when I checked my answer, the manual put timberland under the heading of PP&E and did not put land. Why?

    August 29, 2016 at 1:30 pm #335989
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54821
    • ☆☆☆☆☆

    It is because land on which timber is growing is a depreciating asset (because it is worth less as the timber is used).

    However there is no way ‘timber land’ will be examined in paper F3.

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