Explain how the accounting treatment of each of four facts

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Question - The following are facts that occurred in 2020 regarding PT ABC:

a. The entity changes the depreciation method for its production machines from the straight-line method to the multiple-declining balance method

b. The entity has agricultural products which have been measured at cost less accumulated depreciation and accumulated impairment losses. Since 2020, the futures exchange has started trading these agricultural product commodities, so the Entity changed the measurement method of the agricultural product to be at fair value less costs to sell.

c. The entity changes the measurement method of its property assets from the previous use cost to fair value.

d. The auditor found that the installation costs of the machines purchased in 2019 were recorded as maintenance and repair expenses.

Required - Explain how the accounting treatment of each of the four facts above is based on PSAK 25 (each weighting 5%).

Reference no: EM132984476

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