Addition

With respect to Asset Accounting an addition is the cost involved for adding new assets or bettering existing assets within a business. Additions can take the form of adding new parts that could be reasonably expected to increase useful life or potential, and/or adding new assets to increase production.

Section 73 of AASB 116 requires that Councils financial report shall (amongst other requirements) disclose, for each class of property, plant and equipment a reconciliation of the carrying amount at the beginning and end of the period showing (amongst other items) additions.

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