8. An item of property, plant and equipment should recognised as an asset if and only if: A. it is probable that future economic benefits will flow to the entity concerned. B. the cost of the item can be measured reliably C. Both A & B D. None of the above

8. An item of property, plant and equipment should recognised as an asset if and only if: A. it is probable that future economic benefits will flow to the entity concerned. B. the cost of the item can be measured reliably C. Both A & B D. None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: An intangible asset may be recorded: Select one: a. . at the cost of the asset, which must exclude…

A: Solution: An intangible asset may be recorded, "if acquired from an external party at a cost."

Q: one or more of the following statements are characteristics of assets: a. a probable future benefit…

A: Assets are those resources whether tangible or intangible, current or fixed have an economic value…

Q: Net purchase price of an asset plus all reasonable and necessary expenditures to get it in place and…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: If the “fair value less cost to sell” of a noncurrent asset held for sale is lower than its carrying…

A: Impairment of an asset is required when there are indication that an impairment loss may have…

Q: Which of the following is INCORRECT regarding depreciation? Select one: O a. It is not a matter of…

A: Depreciation is an accounting method used to allocate the cost of tangible assets over their useful…

Q: If a company uses the fair value model to value investment property, changes in the fairvalue of the…

A: Under the fair value model, remeasuring of investment property is made at the end of each reporting…

Q: capitalisation

A: As per IAS -16 and expenditure incurred need to be capitalized if the below two conditions are…

Q: Intangible Assets Product development costs represent a considerable expenditure for companies. They…

A: a. Matching Principle: This principle dictates that expenses should be recognized in the same period…

Q: The cost of an asset that is subject to depreciation is called a.depreciable cost. b.trade-in…

A: Depreciable cost is that portion of cost of asset which can be depreciated. Trade in value relates…

Q: 1. Identifiable intangible assets are those intangible assets that: A. have been purchased by the…

A: Intangible assets are those assets which do not have physical existence.

Q: 86. Amortization of unidentified intangible assets is in terms of A. O Conservatism concept B.…

A: The conservatism principle, also known as the principle of prudence, is one of the fundamental…

Q: Describe to Stan what it means to capitalize an expenditure. What is the general rulefor determining…

Q: Direction: Choose the correct answer. 1. A provision is a. An event which is not recognized…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: In which of the following situations would a cost incurred after an asset’s acquisition be…

A: Asset A resource with a monetary value that is owned or managed by a person, company, or nation in…

Q: ts) Which principle has FASB used to determine the accounting method for recordin elopment costs? 4…

A: There are specific methods of accounting for different activities and there is specific method of…

Q: Prime Limited is a manufacturer of multimedia projectors. The company invests heavily in research…

A: The expenses incurred for an intangible asset are capitalised to its cost when it meets the…

Q: Research and development costs a. Are recorded as research and development assets. b. Are…

A: Research and development costs: Research and development costs refer to the expenditures spent on…

Q: ‘carrying value’ of a depreciable asset is the difference between

A: Carrying value of an asset gives value of Company's asset as on given date after provision of wear…

Q: em is normally reported as a current asset, NCA if non- current. If not an asset, write NA. 9.…

A: Non current assets refers to the those assets which the company made for long term time frame and…

Q: Identify the items included in the cost of a self-constructed asset and determine the amount of…

A: The self-constructed asset costs included in the asset cost are as follows direct materials direct…

Q: Costs associated with various intangibles of a company may either be expensed when incurred or…

A: Please see the next step for the solution:-

Q: The following terms are mismatched with its definitions. Match the terms to its correct definitions.…

A: The terms are matched with the definitions in below table:

Q: Under IAS 36 Impairment of Assets, impairment test for an individual asset requires that the…

A: IAS 36 provide for the impairment of assets and states that assets must not be carried in balance…

Q: The amount for which an asset could be exchanged, a liability settled , or an equity instrument…

A: The amount for which an asset could be exchanged, a liability settled , or an equity instrument…

Q: A cost that is recorded as an asset is ________. Group of answer choices an operating expenditure…

A: The objective of the question is to identify the type of expenditure that is recorded as an asset in…

Q: 17. Which of the following amounts shall not be recognized in profit or loss with respect to…

A: Rental Income from the Investment property shall be recognized in the profit and loss statements as…

Q: Which of the following statements applies to the recognition of property, plant, and equipment…

A: The property plant and equipment are the long-term assets that help in generating revenues. The IAS…

Q: When accounting for self-constructed PPE and computing the amount of interest cost to be…

A: Self constructed PPE are those Property, Plant and Equipment which is constructed by the business on…

Q: Normal repair and maintenance of an asset is an example of what?

A: Normal repair and maintenance cost means the objective of restoring the asset to perform the…

Q: The key difference between amortization and depreciation is that amortization charges off the cost…

A: In this question, we are required to determine the key difference between depreciation and…

Q: 1. How do we decide whether to capitalize (record as an asset) or expense a particular cost? 2.…

A: ANSWER Cost: The cost of the long-lived assets refers to all the expenditures made in order to…

Q: Under IFRS, a company that acquires an intangible asset may use the revaluation model for subsequent…

A: IFRS Policy International Financial Reporting Standards (IFRS) refers to the common set of rules and…

Q: Match the term on the left to the appropriate description on the right. v Historical cost A. The…

A: 1. In this question we match the write explanation with proper headings.This is match the columns.…

Q: 9. On initial recognition, property, plant and equipment should be measured at cost A. Historical…

A: On initial recognition, property, plant and equipment should be recorded at cost i.e historical…

Q: 97. The portion of the acquisition cost of an asset yet to be allocated is known as A. Written down…

A: Acquisition Cost is the value at which the asset is acquired. The cost of acquisition is the total…

Q: Depreciation is a process of Select one a. asset valuation 5. cost alocation Cost accumulation. e…

A: When an asset is purchased and started using its value depreciates due to wear and tear,time…

Q: The allocation of the cost of a tangible asset to expense in the periods in which the asset is used…

A: Tangible assets are physical assets of a company such as land, building, machine which is used to…

Q: In all cases, net property, plant and equipment (PP&E) should be calculated as the gross PP&E less…

A: Solution: Gross PP &E = Cost of purchase of PPE Accumulated depreciation = Depreciation…

Question

8. An item of property, plant and equipment should recognised as an asset if and only if:
A. it is probable that future economic benefits will flow to the entity concerned.
B. the cost of the item can be measured reliably
C. Both A & B
D. None of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

3) Which of the following best describes a depreciation base?7) The acquisition cost of an asset relative to its fair value O The estimated market value of an asset at the end of its useful life O The historical cost of an asset less the depreciation recognized to date O The amount that should be expensed over an asset's useful life
Which of the following statements is correct? Question 1 options: a Some intangible assets have physical substance b Intangible assets are always classified as noncurrent assets even in cases where they are part of a disposal group. c The process of recording the expiration of the economic benefits of an intangible asset is called depletion. d Intangible assets can be obtained in one of two ways – external acquisition or internal development
Revenue Expenditures are Select one: O a. Expenses related to Business Operation O b. None of the these O c. Have no direct effect on profit O d. Expenses incurred when purchasing non- current assets
Which one of the following tangible fixed assets would not normally be ?depreciated Option 1 O Equipment Machinery O Land O Buildings O
What is the meaning of the following:- IAS 40 paragraph 32A, An entity may: (a) choose either the fair value model or the cost model for all investment property backing liabilities that pay a return linked directly to the fair value of, or returns from, specified assets including that investment property; and (b) choose either the fair value model or the cost model for all other investment property, regardless of the choice made in (a).
Fair value as a method of asset measurement is defined as: Multiple Choice O O the cost of an asset adjusted for the depreciation or amortization accumulated over its lifetime. price that would be received to sell assets in an orderly transaction between market participants on a given date. the net amount of cash into which an asset could be converted in the ordinary course of business. the value of what is given in exchange for the asset at its initial acquisition.
The Intangible assets are fair valued on two methods the Cost and the Income or Present Value (PV) methods. What is the Concluded Value?
Distinguish between the “cost model” and “fair value” model of accounting for investment property.
Which of the following is not a capital expenditure decision Select one: a. Improvement in fixed asset b. Purchase of goodwill c. None of the options d. Replacement in fixed asset e. R&D Expenditure
All financial assets are initially measured at fair value plus transaction costs, except A. Amortized cost C.None of these C. Fair value through profit and loss D. Fair value through OCI
If an intangible asset is acquired as a part of the business combination it's recognised at: a. Fair value b. Cost c. Carring amount d. None of the given options
The following are properly classified as capital expenditure, except: a. Expenses to promote business goodwill b. Acquisition of intangibles c. Rentals under a “Lease-to-Own” agreement d. None of the above