CERTYNEX IFRS ACADEMY

The depreciation charge for a machine used exclusively to manufacture finished goods held for sale should be:

included in the conversion costs of inventories, and recognised in profit or loss when the goods are sold.

recognised immediately as an expense of the period, because depreciation is always an expense of the period in which it arises.

added to the carrying amount of the machine itself.

recognised in other comprehensive income until the goods are sold.