Property, Plant & Equipment: Q8

Q8: Do we need to depreciate and also identify impairment of items of Property, plant and equipment if we use:

(a) cost model

(b) revaluation model

A:

Yes – for both (a) and (b)

Whether we use the cost or revaluation models, both require us to depreciate and to also identify impairment of items of Property, plant and equipment.