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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 16
Sir, with regards to property, plant & equipment, the related note in the financial statements shows:
1) Total Cost
2) Accumulated Depreciation
3) Net Book Value
Under the heading accumulated depreciation, there is a part which says,”Write Back on Disposal”. Can you please explain this to me sir and also give an example.
Hi,
When we dispose of an item of PPE we need to remove the cost and the associated accumulated depreciation. I believe that the removal of the accumulated depreciation is what you refer to above.
Don’t focus too much on the notes to the financial statements in your studies as these are not really seen in the exam, just focus on the accounting treatment and its explanation.
Thanks