IAS 16 Depreciation on Idle Machinery
Posted: 20 Mar 2023, 14:15
Hello
A company has a manufacturing plant producing nails and related products. The company also has a merchandise wholesale business. In the current reporting year, the production was halted due to shortage of raw materials and as a result the plant and machinery remain idle for the whole year, should the company compute the depreciation of the plant & machinery for the year as per IAS 16?
A company has a manufacturing plant producing nails and related products. The company also has a merchandise wholesale business. In the current reporting year, the production was halted due to shortage of raw materials and as a result the plant and machinery remain idle for the whole year, should the company compute the depreciation of the plant & machinery for the year as per IAS 16?