Kazakhstan Auditor Attestation

Practice session

Under IAS 16 'Property, Plant and Equipment', an entity purchased production machinery for 45,000,000 KZT on 1 January 2024. Delivery and installation costs were 3,000,000 KZT. Initial operating losses before commercial production were 1,500,000 KZT. An initial estimate of dismantling and site restoration costs at the end of its 10-year useful life is 5,000,000 KZT (present value discounted at 10% is 1,927,716 KZT). What is the initial cost of the asset recognized on 1 January 2024?

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