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WorksheetsPAS 16 20 23
Total questions: 10
Worksheet time: 3mins
PAS 16 does apply to
property, plant and equipment classified as held for sale in accordance with PFRS 5
biological assets related to agricultural activity other than bearer plants
the recognition and measurement of exploration and evaluation assets
bearer plants and land land used for agricultural activity
The cost of an item of property, plant and equipment does not include
purchase price, including import duties and non-refundable purchase taxes
costs directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management
initial estimate of the costs of dismantling and removing the item and restoring the
site on which it is located
purchase price, before
deducting trade discounts and rebates.
Which of the following should not be part of the cost of PPE?
costs of introducing a new product or service
costs of site preparation
installation and assembly costs
costs of testing whether the asset is functioning properly
After recognition as an asset, an item of property, plant and equipment shall be carried at its
cost less any accumulated depreciation and any accumulated impairment losses. What is this model?
cost model
revaluation model
valuation model
fair value model
Depreciation of an asset starts when the asset is being delivered on the vicinity of the company.
True
False
The gain or loss arising from the derecognition of an item of property, plant and equipment shall be included in profit or loss when the item is derecognized.
True
False
PAS 20 does not apply to all, except
income tax holidays,
investment tax credits, accelerated depreciation allowances and reduced income tax
rates.
government participation in the ownership of the entity
government grants covered by PAS 41 Agriculture
building given by the government to a private entity
Government grants related to assets, including non-monetary grants at fair value, shall be
presented in the statement of financial position either by setting up the grant as deferred income
or by deducting the grant in arriving at the carrying amount of the asset.
TRUE
FALSE
These are finance charges that are directly attributable to the acquisition, construction
or production of a qualifying asset that forms part of the cost of that asset as per PAS 23
Borrowing costs
Finance Charge
Interest Fee
Relevant Cost
Capitalization of borrowing costs commences when the entity meets all the following
conditions, except
It incurs expenditures for the asset
It incurs borrowing costs
It undertakes activities that are necessary to prepare the asset for its intended use or sale
It applies revaluation model
