Question

    Which of the following leads to de-recognition of PPE

    under Ind AS 16?
    A Temporary idle use Correct Answer Incorrect Answer
    B Transfer to inventory Correct Answer Incorrect Answer
    C Exchange for similar asset with no commercial substance Correct Answer Incorrect Answer
    D When no future economic benefits are expected from use or disposal Correct Answer Incorrect Answer

    Solution

    PPE is de-recognised when it is either disposed of or no longer provides future economic benefits as per para 67 of Ind AS 16.

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