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Questions and Answers
Which of the following costs are directly attributable and capitalizable when acquiring property, plant, and equipment?
Which of the following costs are directly attributable and capitalizable when acquiring property, plant, and equipment?
- Administration and other general overhead costs
- Cost of site preparation (correct)
- Costs of opening a new facility
- Costs of advertising and promotion
What is an example of a cost that does not qualify for recognition when acquiring property, plant, and equipment?
What is an example of a cost that does not qualify for recognition when acquiring property, plant, and equipment?
- Costs of conducting business in a new location (correct)
- Costs of relocating part of an entity's operations
- Costs of employee benefits
- Professional fees
Which cost incurred while an item is capable of operating but not yet brought into use is not eligible for capitalization?
Which cost incurred while an item is capable of operating but not yet brought into use is not eligible for capitalization?
- Costs of testing asset functionality
- Professional fees
- Initial operating losses (correct)
- Installation and assembly cost
What type of costs related to acquiring property, plant, and equipment are considered expensed and not capitalized?
What type of costs related to acquiring property, plant, and equipment are considered expensed and not capitalized?
When an entity acquires property, plant, and equipment, which cost element is considered directly attributable and capitalizable?
When an entity acquires property, plant, and equipment, which cost element is considered directly attributable and capitalizable?
Which of the following costs is considered directly attributable to acquiring property, plant, and equipment?
Which of the following costs is considered directly attributable to acquiring property, plant, and equipment?
When should a government grant be recognized according to PAS 20?
When should a government grant be recognized according to PAS 20?
How should a government grant related to an asset be accounted for?
How should a government grant related to an asset be accounted for?
What is required for a government grant to be recognized as income according to PAS 20?
What is required for a government grant to be recognized as income according to PAS 20?
How should a government grant related to a specific asset be presented?
How should a government grant related to a specific asset be presented?
What should be done with a government grant related to an asset whose primary condition is that the entity constructs a long-term asset?
What should be done with a government grant related to an asset whose primary condition is that the entity constructs a long-term asset?
According to PAS 16, paragraph 67, when should the carrying amount of an item of property, plant, and equipment be derecognized?
According to PAS 16, paragraph 67, when should the carrying amount of an item of property, plant, and equipment be derecognized?
Which of the following costs are considered directly attributable costs under PAS 20?
Which of the following costs are considered directly attributable costs under PAS 20?
How should fully depreciated property be treated in the accounts?
How should fully depreciated property be treated in the accounts?
In accounting for a government grant under PAS 20, which of the following costs would not qualify for recognition?
In accounting for a government grant under PAS 20, which of the following costs would not qualify for recognition?
What is the treatment of gain or loss from derecognition of an asset?
What is the treatment of gain or loss from derecognition of an asset?
How are costs not qualifying for recognition typically treated?
How are costs not qualifying for recognition typically treated?
What is the appropriate accounting treatment for a government grant related to income?
What is the appropriate accounting treatment for a government grant related to income?
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