Property, Plant and Equipment (IAS 16)

[danishayub_76]

New machine 12+14
Loss 4
Old machinery cost 16
Cash 14
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by m_zeeshanuddin_sa</i>
<br />Dear kamran Sb,

Does it mean that new machine's cost be "Fair Market value of Old Machine"+"Trade in Allowance"

or

New Machine 30,000 DR
Dep 8,000 DR
Loss 4,000 DR
Old Machine 24,000 CR
Cash 18,000 CR

Will it reflect true picture of transaction????
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