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Journal entryAdvancedVariant — group VG.IAS2.000408Published

Question · Recognition of inventories as an expense

The telecoms operator Fibrelia holds reels of optical fibre intended for resale to installers. It decides to use part of them, with a carrying amount of 64,000, to roll out its own network, which it accounts for as property, plant and equipment. The controller proposes to recognise these reels as an expense of the year. Record the correct entry.

Carrying amount of the reels used
64,000
Your answer
  1. Line 1

    Account Property, plant and equipment (network under construction)

  2. Line 2

    Account Inventories of optical fibre

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