Accounting Principles Quiz

According to IAS 16, each part of an item of property, plant and equipment with a cost significant to the total cost of the item shall be depreciated separately. (True/False)

IAS 8 states that changes in accounting policy should be treated in the current and future periods. (True/False)

The recoverable amount of an asset is the lower of its fair value less costs to sell, and its value in use according to IAS 16. (True/False)

The acquisition cost of an item of property, plant and equipment could include some estimated costs according to IAS 16. (True/False)

Intangible assets that satisfy the conditions for amortization should be amortized for a period not exceeding 20 years. (True/False)

According to IFRS, changes in accounting estimates are different from correction of errors because they result from new information or new developments. (True/False)

In transactions involving exchanges of assets with commercial substance, both gains and losses should be immediately recognized. (True/False)

It is assumed that fair presentation of the financial position, financial performance, and cash flows of a reporting entity is achieved by application of IFRS's with additional disclosure if necessary. (True/False)