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Questions and Answers
Which term best describes the systematic allocation over its useful life of the cost of an asset, or other amount substituted for cost, less its residual value?
Which term best describes the systematic allocation over its useful life of the cost of an asset, or other amount substituted for cost, less its residual value?
- Value in use
- Depreciation (correct)
- Impairment
- Derecognition
According to IAS16, which of the following should be included in the cost of an item of property, plant and equipment?
According to IAS16, which of the following should be included in the cost of an item of property, plant and equipment?
- Costs of training staff on the new asset
- Apportioned general overhead costs
- Installation and assembly costs
- Initial delivery and handling costs (correct)
What best describes the amount at which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction?
What best describes the amount at which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction?
- Realisable value
- Fair value (correct)
- Residual value
- Value in use
Per IAS16, which statement regarding non-current assets is correct?
Per IAS16, which statement regarding non-current assets is correct?
What refers to the removal of an asset from an entity's statement of financial position?
What refers to the removal of an asset from an entity's statement of financial position?
What best describes the term 'residual value'?
What best describes the term 'residual value'?
Which term best describes the cost of an asset less its residual value?
Which term best describes the cost of an asset less its residual value?
What best describes the carrying amount of an asset?
What best describes the carrying amount of an asset?
Which term best describes the removal of an asset from an entity's statement of financial position?
Which term best describes the removal of an asset from an entity's statement of financial position?
What best describes the term 'depreciation'?
What best describes the term 'depreciation'?
