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Which of the following is recognized in the cost of PPE?

• Purchase price (*)

• Cost of introducing new service

• Cost of staff training in order to be able use the new asset (**)

• (*) & (**)

1.     The recognition of costing of a self-constructed asset should stop when:

• This PPE has to put into use (**)

• This PPE is able to operate in the manner intended by management (*)

• This PPE can make profit

• (*) & (**)

A plant is built on a land. Depreciation of this plant and land should be:

• accounted depreciation separately for the land and plant

• do not accounted depreciation separately for the land and plant

• depreciation of the land as useful life of the plant

• just accounted depreciation for the plant

An entity has an item of equipment with carrying amount of CU 5,000. It is sold for CU 7,000. How is this accounted for?

• Gain CU 7,000

• Loss CU 2,000

• Gain CU 2,000

• Loss CU 5,000

A building is held for rental to others, it is recognized as:

• PPE

• Inventories

• Investment properties

• All of them

An equipment is held for rental to others, it is recognized as:

• PPE

• Inventories

• Investment properties

• All of them

How is replacement cost regarding PPE recognized?

• Expense in the period incurred

• The carrying amount of PPE

• Prepaid expense

• All of them

In a non-commercial exchange, the cost of the asset received is determined:

• Fair value of the asset given up

• Fair value of the asset received

• Net book value of the asset given up

• Net book value of the asset received