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A company has purchased a tract of land. It expects to build a production plant on the land in approximately 5 years.?

During the5 years before construction, the

land will be idle. The land should be reported as:

a. property, plant, and equipment.

b. land expense.

c. a long-term investment.

d. an intangible asset.

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Question added by Deleted user
Date Posted: 2016/08/30
Ramon Quedit
by Ramon Quedit , Chief Accountant , Ket Rent A Car Company Limited

Property, Plant & Eqipment.

Jafar  Ali Wahed Mohammed
by Jafar Ali Wahed Mohammed , Finance Manager , Al Jubiri Group

a. Poperty, Plant and Equipemnet because

    i. IAS 16 specifically requires it to be classified as such.

   ii. there is no other Accounting Standard requiring disclosure of the same alternatively.  

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