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WorksheetsQuiz IAS 16
Total questions: 10
Worksheet time: 3mins
A COMPANY PURCHASES LAND WITH AN OFFICE BUILDING. THE BUILDING HAS A USEFUL LIFE. HOW SHOULD THE LAND BE DEPRECIATED
Depreciate over 20 years
Don’t depreciate the land
Depreciate over useful life of the land
None of these
IF AN ASSET DECREASES IN VALUE, THE DECREASE IS NOTED AS...
An expense in the SOCI
A decrease in the “revaluation surplus” in the SOFP
A decrease in retained earnings in the SOFP
As “valuation decit” in the SOFP
WHICH OF THESE IS AN ALLOWABLE COST OF AN ASSET UNDER IAS 16?
Professional fees
General overheads
Initial operating losses
Administration expenses
AN INTANGIBLE ASSET WITH A FINITE USEFUL LIFE SHOULD BE AMORTISED OVER...
Its expected useful life
A period determined by management
Five years
No foreseeable limit
A COMPANY MAY INTERNALLY GENERATE AN INTANGIBLE ASSET.
True
False
INTANGIBLE ASSETS WITH AN INDEFINITE USEFUL LIFE SHOULD NOT BE AMORTISED.
True
False
WHEN DOES AMORTISATION OF AN INTANGIBLE ASSET COMMENCE?
When the asset is substantially complete
When the asset is available for use
When management determine
At the start of the accounting period
WHICH OF THE FOLLOWING INTERNALLY GENERATED ITEMS MAY NOT BE RECOGNISED AS INTANGIBLE ASSETS?
Mastheads
Customer lists
Brands
All of these
WHICH OF THE FOLLOWING IS AN INTANGIBLE ASSET UNDER IAS 38?
Patent rights
Market share
Customer loyalty
Technical knowledge training
WHICH TWO SUBSEQUENT ACCOUNTING TREATMENTS ARE ALLOWED SUBSEQUENTLY TO INITIAL RECOGNITION?
Cost model and present value model
Cost model and revaluation model
Fair value model and revaluation model
Fair value model and cost model
