Question: (Learning Objective 3, 5: Preparing a note to the fi nancial statement) Knight Ltd commenced operations on January 1, 20X6. On that day, it bought:
(Learning Objective 3, 5: Preparing a note to the fi nancial statement) Knight Ltd commenced operations on January 1, 20X6. On that day, it bought:
■ Equipment costing €400,000 million, with a useful life of 5 years.
■ Furniture and fi ttings costing €120,000, with a useful life of 4 years.
■ Motor vehicle costing €200,000, with a useful life of 10 years.
Knight depreciates all PPE on a straight-line basis with no residual value. No other PPE was purchased or disposed of during the year.
❙ Requirements What would Knight report as PPE on its balance sheet? Prepare the notes to the accounts related to PPE. Note you may need to look at how BASF provided a similar note on its PPE.
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