Solution-Reasons for the exclusion for payments

Reasons for the exclusion for payments

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Reference no: EM133205507

A company, BP Sdn Bhd has bought a new machine in 2020. The following expenses have been incurred:

	RM	RM
Purchase price	48,000
Discount	(1,000)
		47,000
Delivery charge		400
Erection charge		500
Additional component to increase capacity		1,000
Replacement parts		600
		49,500

Required:

In accordance with IAS 16, Property, plant and equipment, calculate the cost for the above machine that will be capitalised. State the reasons for the exclusion for any payments that has not be included in the computation of the costs.

Reference no: EM133205507

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Reasons for the exclusion for payments

Reference no: EM133205507

Reference no: EM133205507

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