Required disclosure for property, plant, and equipment in the financial statements is based upon

A) age and depreciation method
B) age and nature
C) nature and function
D) function and depreciation method

Question

Required disclosure for property, plant, and equipment in the financial statements is based uponA) age and depreciation methodB) age and natureC) nature and functionD) function and depreciation method

Scout Schmidt · Accepted Answer

Final Answer : C, Explanation :  The required disclosure for property, plant, and equipment in the financial statements is based upon the nature and function of the assets, rather than their age or depreciation method. This includes disclosure of the type of asset, its use in the business, and any restrictions or encumbrances on the asset. Age and depreciation method are important factors, but they are not the sole basis for disclosure requirements.

Required disclosure for property, plant, and equipment in the financial statements is based upon

A) age and depreciation method
B) age and nature
C) nature and function
D) function and depreciation method

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Learning Objectives

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