It is not necessary to report both the cost and the accumulated depreciation of property, plant and equipment in the financial statements.

Question

Quizplus · Accepted Answer

Both the cost and the accumulated depreciation of property, plant and equipment must be reported in the financial statements. The cost represents the historical cost of the asset while accumulated depreciation reflects how much of the asset's value has been used up over time. Reporting both the cost and accumulated depreciation provides users of the financial statements with a better understanding of an entity's investment in property, plant, and equipment and the related depreciation expense.

It Is Not Necessary to Report Both the Cost and the Accumulated