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WorksheetsPROPERTY, PLANT AND EQUIPMENT
Total questions: 10
Worksheet time: 10mins
Which of the following items qualifies as property, plant and equipment?
A machine bought for use during a single accounting period
A machine bought for use in more than one accounting period
A machine bought for resale to a customer
Computer software bought for use in more than one accounting period
The "carrying amount" of an item of property, plant and equipment generally refers to:
The replacement cost of the item
The depreciable amount of the item
The cost of the item
The amount at which the item is recognised in the financial statements
Which of the following would not be included in the cost of an item of property, plant and equipment?
Testing costs
Delivery and installation charges
Refundable value added tax
Site preparation costs
Borrowing costs that are directly attributable to the acquisition of a qualifying asset must be capitalised as part of the cost of that asset. True or False?
TRUE
FALSE
The depreciation charge is required to be based on?
The profitability of the asset being depreciated
The expected useful life of the asset being depreciated
A period not exceeding 5 years for plant and machinery, and 20 years for buildings and land
The replacement cost of the asset being depreciated
Which of the following best describes the higher of an asset's net selling price and its value in use?
Depreciable amount
Revalued amount
Recoverable amount
Carrying value
How should an asset be initially recognised in the financial statements?
Measure at market value
Measure at cost
Measure at net realisable value
Measure at fair value
What is the amount an asset is recognised at in the SOFP less any accumulated depreciation or impairment losses?
Residual value
Carrying amount
Impairment amount
Fair value
Which of the following is not a component of cost of an asset?
Purchase price
Import duties
Refundable sales tax
Estimate of compulsory future dismantling costs
If an asset increases in value, the increase is noted as…
An increase in net profit in the SOCI
An increase in revaluation surplus in the SOFP and other comprehensive income in the SOCI
An increase in retained earnings in SOFP
An increase in “other profit” in SOCI
