Platz Ltd received a specialized industrial machine as a donation (free of charge) on 1st March 2021. The machine will be used to produce intermediate product so as to enhance the quality of product for sale to external customers. 

Required

a) Using the asset recognition criteria, explain whether or not the machine should be incorporate in the accounting records

b) Discuss the basis of measurement that the management may consider 

c) Outline the factors that the management should consider in choice of accounting policy 

d) Using the above case explain the entity theory of accounting 

Answer rating: 100% (QA)

a Since asset is received free of any charge in order to decide whether asset should be incorporated in accounting records or not first we should chec... View the full answer