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Quiz IAS 16

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

A COMPANY PURCHASES LAND WITH AN OFFICE BUILDING. THE BUILDING HAS A USEFUL LIFE. HOW SHOULD THE LAND BE DEPRECIATED

a)

Depreciate over 20 years

b)

Don’t depreciate the land

c)

Depreciate over useful life of the land

d)

None of these

2.

IF AN ASSET DECREASES IN VALUE, THE DECREASE IS NOTED AS...

a)

An expense in the SOCI

b)

A decrease in the “revaluation surplus” in the SOFP

c)

A decrease in retained earnings in the SOFP

d)

As “valuation decit” in the SOFP

3.

WHICH OF THESE IS AN ALLOWABLE COST OF AN ASSET UNDER IAS 16?

a)

Professional fees

b)

General overheads

c)

Initial operating losses

d)

Administration expenses

4.

AN INTANGIBLE ASSET WITH A FINITE USEFUL LIFE SHOULD BE AMORTISED OVER...

a)

Its expected useful life

b)

A period determined by management

c)

Five years

d)

No foreseeable limit

5.

A COMPANY MAY INTERNALLY GENERATE AN INTANGIBLE ASSET.

a)

True

b)

False

6.

INTANGIBLE ASSETS WITH AN INDEFINITE USEFUL LIFE SHOULD NOT BE AMORTISED.

a)

True

b)

False

7.

WHEN DOES AMORTISATION OF AN INTANGIBLE ASSET COMMENCE?

a)

When the asset is substantially complete

b)

When the asset is available for use

c)

When management determine

d)

At the start of the accounting period

8.

WHICH OF THE FOLLOWING INTERNALLY GENERATED ITEMS MAY NOT BE RECOGNISED AS INTANGIBLE ASSETS?

a)

Mastheads

b)

Customer lists

c)

Brands

d)

All of these

9.

WHICH OF THE FOLLOWING IS AN INTANGIBLE ASSET UNDER IAS 38?

a)

Patent rights

b)

Market share

c)

Customer loyalty

d)

Technical knowledge training

10.

WHICH TWO SUBSEQUENT ACCOUNTING TREATMENTS ARE ALLOWED SUBSEQUENTLY TO INITIAL RECOGNITION?

a)

Cost model and present value model

b)

Cost model and revaluation model

c)

Fair value model and revaluation model

d)

Fair value model and cost model