Under AASB 102 Inventories, Items of Inventories That Are Used

question 15

Multiple Choice

Under AASB 102 Inventories, items of inventories that are used by business enterprise as components in a self-constructed property asset are required to be:

• A) aggregated into the 'cost of goods sold' expense in the period in which the items are used.
• B) expensed directly into equity in the period in which the items are used.
• C) capitalised and depreciated.
• D) added to a 'property construction' provision account.

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Definitions:

Rights

Entitlements or privileges granted to individuals by law, social principles, or moral norms, often upheld and protected by legal systems.

Title

A formal document or legal right indicating ownership of property or assets.

Possession

In law, it refers to the actual holding or control of property, whether owned or not.

Perfect

To complete or make flawless, often used in legal terms to describe the act of finalizing a security interest in accordance with the law.