IAS 16 Accounting for Acqusition by trade-in, donation of Assets, including VAT Implications

In this article, I cover how to journalize the acquisition of an item of PPE by way of trade-in, where the figures in question are VAT inclusive and both parties are registered operators. I also cover how to account for the donation of an item of PPE.

Consider the following question:


            
SOLUTION



WORKINGS



Article Details

Written by: Joseph Gondo 

Nitty-Gritty Private College

Call/WhatsApp: +263 78 637 6813

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Sir Josef'


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