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WorksheetsIAS 16 PROPERTY, PLANT AND EQUIPMENT
Total questions: 10
Worksheet time: 9mins
PPE are tangible assets that:
held by entities for use in the production of supply of goods and services
rental to others
admin purpose
normally within one year
All PPE initially must be recorded at
Fair value
Cost price
Net realisable value
Replacement cost
Based on IAS 16 PPE, all PPE subsequently can be measured using
Cost Model
Fair value model
Revaluation model
Recoverable amount model
The following cost may be included in initial measurement at cost price...
Staff training
Initial operating losses
import duties
present value of future refurbishment cost
feasibility study cost
Day to day servicing cost must be recognised as expenses in the period it is incurred.
False
True
Building acquired at 1/1/2010 with EUEL 50 years at $20m. Assume nil SV. SLM. At 1/1/ 2016 revalued to $18.4m. Calculate the amount of revaluation surplus at 1/1/2016.
$0.42m
$1.6m
$8m
$800,000
Building acquired at 1/1/2015 with EUEL 80 years at $100m. Assume nil SV. SLM. At 1/1/ 2019 revalued to $98m. Calculate the amount of revaluation surplus at 1/1/2019.
$3m
$2m
$5m
$10m
Building acquired at 1/1/2010 with EUEL 50 years at $20m. Assume nil SV. SLM. At 1/1/ 2016 revalued to $18.4m. Calculate the amount of depreciation for year ended 31/12/2016.
$0.4m
$0.24m
$0.22m
$0.42m
Motor vehicle with cost price $80,000 and had been used for 4 years disposed for $ 15,000. SLM at 20%. Calculate the profit or loss on disposal.
Loss $1,000
Profit $1,000
Profit $ 65,000
Loss $16,000
What is the correct double entry for EDA?
DR Retained Earnings CR Revaluation Reserve
DR P/L CR Revaluation Reserve
DR Revaluation Reserve CR Retained Earnings
DR Revaluation Reserve CR P/L
