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What is Depreciation of Property, Plant, and Equipment about?

Property, plant and equipment (PPE) are tangible items that are used for more than one period in production, supply of goods/services, or rental to others. PPE must meet probability and reliability criteria for initial recognition. Spare parts and standby equipment can qualify as PPE. PPE is initially measured at cost, which includes purchase price, costs to prepare the asset for use, and estimated dismantling/restoration costs. Subsequent costs that extend life or improve efficiency are capitalized while d

Author

Sinead Erelah

Language

EN