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Questions and Answers
What is the cost of an asset that includes import duty and non-refundable purchase price?
What is the cost of an asset that includes import duty and non-refundable purchase price?
- Net realizable value
- Historical cost
- Purchase price including import duty and non-refundable purchase price (correct)
- Current market value
What are the costs that can be capitalized as part of the cost of property, plant and equipment?
What are the costs that can be capitalized as part of the cost of property, plant and equipment?
- All costs incurred during the acquisition
- Only purchase price and import duty
- Only directly attributable costs (correct)
- Directly attributable costs and indirect costs
What is the treatment of proceeds from selling samples produced during the testing of an asset?
What is the treatment of proceeds from selling samples produced during the testing of an asset?
- Recognized as revenue
- Included in the cost of property, plant and equipment
- Included in profit or loss (correct)
- Included in other comprehensive income
What is the initial estimate of the cost of dismantling and removing an asset?
What is the initial estimate of the cost of dismantling and removing an asset?
What is the cost of an asset that excludes trade discount and rebate?
What is the cost of an asset that excludes trade discount and rebate?
What is the cost of testing whether an asset is functioning properly?
What is the cost of testing whether an asset is functioning properly?
When payment for an item of property, plant and equipment is deferred beyond normal credit terms, what is the cost?
When payment for an item of property, plant and equipment is deferred beyond normal credit terms, what is the cost?
How is the excess of the installment price over the cash price treated?
How is the excess of the installment price over the cash price treated?
A machinery is purchased at an installment price of P350,000. The terms are P50,000 down and the balance payable in three equal annual installments. What is the cash price of the machinery?
A machinery is purchased at an installment price of P350,000. The terms are P50,000 down and the balance payable in three equal annual installments. What is the cash price of the machinery?
What is the purpose of recording the asset at the cash price?
What is the purpose of recording the asset at the cash price?
Over what period is the interest expense amortized?
Over what period is the interest expense amortized?
What is the basis for measuring proceeds when shares are issued for consideration other than actual cash?
What is the basis for measuring proceeds when shares are issued for consideration other than actual cash?
In what order is the property measured when acquired through the issuance of share capital?
In what order is the property measured when acquired through the issuance of share capital?
What is the measurement basis for a piece of land acquired through the issuance of share capital?
What is the measurement basis for a piece of land acquired through the issuance of share capital?
What is the par value of the 20,000 shares issued in the illustration?
What is the par value of the 20,000 shares issued in the illustration?
What is the purpose of measuring the property acquired through the issuance of share capital?
What is the purpose of measuring the property acquired through the issuance of share capital?
What is the initial measurement of a financial liability when an entity acquires an asset by issuing bonds payable?
What is the initial measurement of a financial liability when an entity acquires an asset by issuing bonds payable?
What is the order of measurement when an entity acquires an asset by issuing bonds payable?
What is the order of measurement when an entity acquires an asset by issuing bonds payable?
What is the face amount of the bonds payable in the illustration?
What is the face amount of the bonds payable in the illustration?
What is the asset acquired in the illustration?
What is the asset acquired in the illustration?
What is the fair value of the asset received in the illustration?
What is the fair value of the asset received in the illustration?
What is the basis for measuring the cost of an item of property, plant and equipment acquired in exchange for a nonmonetary asset or a combination of monetary and nonmonetary assets?
What is the basis for measuring the cost of an item of property, plant and equipment acquired in exchange for a nonmonetary asset or a combination of monetary and nonmonetary assets?
When is an exchange transaction recognized at carrying amount?
When is an exchange transaction recognized at carrying amount?
What is commercial substance in an exchange transaction?
What is commercial substance in an exchange transaction?
How does an entity assess whether an exchange transaction has commercial substance?
How does an entity assess whether an exchange transaction has commercial substance?
What is entity-specific value?
What is entity-specific value?
When is an exchange transaction recognized at fair value?
When is an exchange transaction recognized at fair value?
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