Regulations on Business Entity Accounting Handling Article 18

Property, plant and equipment shall mean tangible asset items held to be in the use of production or provision of commodities, agricultural produce or services, as rental to tenants or for administrative purposes, and to be with expected useful life longer than one year, and the accounting items of which shall include land, buildings, machineries, transportation equipment, office equipment and bearer plants.Property, plant and equipment shall be recognized at its original and subsequent costs at the time of acquisition or construction. Original cost shall include the purchase price, any costs incurred directly attributable to bringing the asset to the site and working condition for its intended use and estimated cost of dismantling and removing the asset and restoring the site in the future. Subsequent costs shall include the cost of enhancements, partial redevelopment or maintenance.Property, plant and equipment shall be presented at a carrying amount of costs subtracted by accumulated depreciation and accumulated impairment losses.The fact, if any, that property, plant and equipment being provided as security, pledged, or otherwise subject to any restriction or limitation shall be disclosed in financial statements together with the amounts involved.