Asked by arjun trivedi on Jun 30, 2024
Verified
When a plant asset is traded for another similar asset, losses on the asset traded are not recognized.
Plant Asset
Long-term tangible assets used in the operations of a business that are not intended for sale.
- Learn the accounting methods applied to the disposal, sale, exchange, and discarding of fixed assets.
Verified Answer
AO
Amure OdulateJul 03, 2024
Final Answer :
False
Explanation :
In accounting, when a plant asset is traded for another similar asset, losses on the asset traded are recognized for the purpose of accurately reflecting the transaction's impact on the financial position of the entity. However, gains may not always be recognized, depending on the specific accounting standards applied (e.g., GAAP, IFRS).
Learning Objectives
- Learn the accounting methods applied to the disposal, sale, exchange, and discarding of fixed assets.