M05 - PPE / Intangibles / Borrowing Costs

Question 1

What is a bearer plant?

Answer 1

bearer plant is a living plant that:
- is used in the production or supply of agricultural produce;
- is expected to bear produce for more than one period; and
- has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales.
IAS 16 - PPE

Question 2

What is PPE items?

Answer 2

Property, plant and equipment are tangible items that:

(a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and

(b) are expected to be used during more than one period.