IAS 16 - Property, Plant, and Equipment

An item of Property, plant & equipment shall be recognized as an asset when.

• The cost of an asset can be measured reliably

• It is probable that future economic benefits associated with the asset will flow to the entity

• Both

• None

These are examples of PPE, except.

• Machinery

• Animals

• Furniture & fixtures

• Land

It means that the cost of the PPE together with the related accumulated depreciation shall be removed from the statement of financial position.

• Revaluation Model

• Derecognition

• Cost Model

• Depreciation

It is defined as the systematic allocation of the depreciable amount of an asset over the useful life.

• Depreciation

• Residual Value

• Cost Model

• Derecognition

These are the factors of depreciation in order to properly compute the amount of depreciation

• Depreciable Amount, Residual Value, Useful life

• Cost Model, Revaluation Model

• Both

• None

Depreciation of an asset begins when it is available for use

• True

• False

Property, plant & equipment (IAS 16) are intangible assets

• True

• False

Residual Value is the estimated net amount currently obtainable if the asset is at the end of the useful life

• True

• False

The depreciation method shall not be reviewed at least at every year-end

• True

• False

Depreciable amount is the cost of an asset or other amount substituted for cost, less the residual value

• True

• False