This report provides an analysis of accounting theory, specifically focusing on the financial reporting practices of two companies: Australian Dairy Farm and Capilano Honey Limited. The report examines the application of accounting standards, such as AASB 116, and the treatment of Plant, Property, and Equipment (PPE). It discusses key aspects like cost, accumulated depreciation, impairment losses, and fair value models. The analysis includes the valuation methods, depreciation methods, and the role of directors in ensuring the recoverable amount of assets. References to relevant accounting literature, including works by Scott (2015) and Gaffikin & Aitken (2014), are incorporated to support the analysis. The report also highlights the differences in accounting treatments between the two companies, especially concerning the valuation of land and buildings versus plant and equipment.