Accounting Policy for Property, Plant, and Equipment, and Revenue Recognition
Identify the basis on which the financial statements were prepared.
Identify the sources of revenue for the Department and indicate whether each source of revenue results from an exchange or non-exchange transaction (provide reasons for your assessment of exchange vs. non-exchange classification for each item identified). Identify the note accounting policy for property, plant, and equipment (it might be labeled ‘Capital Assets’). Determine the accounting policy used to account for property, plant, and equipment and indicate, providing reasons, whether you consider it the most appropriate accounting policy to account for the items of property, plant, and equipment in the Department.