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Hello Tutor,
Can you kindly help me understand this statement.
“As a result of testing recently purchased or constructed PPE, product samples might be produced that are sold. IAS 16 has been amended to require proceeds from such sales, as well as the associated costs, to be recognised in the statement of profit or loss (previously IAS 16 required these proceeds to be deduced from the carrying amount of the PPE).”
Means we need to record income and expense at the same time?
Thanks.
I think it’s like the normal matching concept. Match sales proceeds with associated costs in P&L.
Sample sales dealt with in the same way as regular sales.
New one on me! 🙂
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