[ACYFAR 2] PPE 2

Property, Plant, and Equipment are presented under which section of the statement of financial position?

• Current Assets

• Non-Current Assets

• Other Assets

• Equity

An entity shall derecognize the cost of PPE together with the related accumulated depreciation from the records

• A. Upon disposal

• B. When no future economic benefits or service potential is expected from its use or disposal

• A or B

• Neither A nor B

The accumulated depreciation account on the revaluation date is

• A. Restated proportionately with the change in the carrying amount of the asset

• B. Eliminated against the gross carrying amount of the asset

• Not adjusted

• Either A or B

The revaluation surplus that is realized due to the usage or disposal of the property may be transferred to:

• Income

• OCI

• Retained Earnings

• Share Premium

Revaluation of PPE are recorded using the:

• A. Proportional Method

• B. Elimination Method

• Replacement Method

• A or B

If the carrying amount of the asset increases as a result of revaluation, the increase shall be

• Credited to revaluation surplus

• Credited to retained earnings

• Recognized in Profit or Loss

• Ignored

Which of the following expenditures shall be capitalized?

• A. Revenue Expenditures

• B. Capital Expenditures

• Daily Expenditures

• A and B

• A and C

If the carrying amount of the asset is decreased as a result of a revaluation, the decrease shall be

• Recognized in Profit or Loss

• Charged to revaluation surplus

• Charged to retained earnings

• Charged to the revaluation surplus to the extent of its balance and the excess will be recognized in profit or loss

According to IAS 16, Property, Plant, and Equipment, which of the following shall be adopted by an entity as their policy in measuring their property, plant, and equipment after initial recognition?

• Cost Model

• Revaluation Model

• Fair Value Model

• Either A or B

Which depreciation method is appropriate for situations involving a large number of similar items, each having a small peso amount?

• Inventory Method

• Replacement Method

• Retirement Method

• Any of the foregoing