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Hi all,
New to accounting, but dealing with a couple of accounting projects in my company. Scenario goes like this:
Our firm sells some products to dealers. After the product is consumed, the packaging material is bought back by our company for recycling purposes. These recyclable packaging materials have always been treated as Inventory in our reporting, but now we intend to convert them to Property Plant and Equipment. These materials are depreciable. We use IFRS. What is the accounting treatment going forward and how do we reconciliate the conversion to PPE from Inventory?
New to accounting, but dealing with a couple of accounting projects in my company. Scenario goes like this:
Our firm sells some products to dealers. After the product is consumed, the packaging material is bought back by our company for recycling purposes. These recyclable packaging materials have always been treated as Inventory in our reporting, but now we intend to convert them to Property Plant and Equipment. These materials are depreciable. We use IFRS. What is the accounting treatment going forward and how do we reconciliate the conversion to PPE from Inventory?