Question

How does IAS refer to PPE?

a) Property, Plant, and Equipment
b) Intangible Assets Standard
c) Inventory Accounting System
d) Investment and Securities

Answer 1

In International Accounting Standards, PPE stands for Property, Plant, and Equipment, which is a category of long-term assets recorded on a company's balance sheet.

Step-by-step explanation:

In the International Accounting Standards (IAS), PPE refers to Property, Plant, and Equipment. This classification is crucial for companies as these assets are considered long-term and are used for production, supply of goods or services, or rental to others. In accounting, the value of PPE is recorded on the balance sheet and is subject to depreciation over the assets' useful lives, reflecting wear and tear, obsolescence, or reduction in value due to usage.