A Company Recently Ordered a Piece of Machinery from Germany

question 29

Short Answer

A company recently ordered a piece of machinery from Germany to be used to manufacture a new product.Which of the following are generally included as cost of an item of property,plant and equipment in accordance with AASB 116?

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Definitions:

Current Assets

Resources anticipated to be transformed into cash, sold off, or used up either within a year or over the span of the business's regular operational cycle, depending on which is more extended.

Current Liabilities

Short-term financial obligations that a company is expected to pay within one year.

Reasonably Possible

A term used in accounting and legal contexts to describe outcomes that are more than remote but less than likely.

Liability Likelihood

The probability or likelihood that a company will be responsible for an obligation or debt in the future.