An international financial reporting standard concerning depreciation states that:1. The straight-line method should be used to depreciate all tangible non-current assets.2. The reducing-balance method should be used to depreciate all intangible non-current assets.Are the above statements true or false?A.B.C.D.Statement 1FalseFalseTrueTrueStatement 2TrueFalseFalseTrue

The monetary value of an asset decreases over time due to use, wear and tear, this is known as…

Answered: An international financial reporting…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1. what are the procedures for applying for patents, copyrights, and trademarks? 2. describe the difference between tangible and intangible assets 3. how does accounting for depreciation differ when the asset is intangible as opposed to tangible?
Henry acquired 80% of Stephen on 1 July 2018. In the post-acquisition period Henry soldgoods to Stephen at a price of GHS12 million. These goods had cost Henry GHS9 million. During theyear to 31 March 2019, Stephen had sold GHS10 million (at cost to Stephen) of these goods forGHS15m million. How will this affect group cost of sales in the consolidated statement of profit or lossof Henry for the year ended 31 March 2019?A Increase by GHS11.5 millionB Increase by GHS9.6 millionC Decrease by GHS11.5 millionD Decrease by GHS9.6 million
Ma1. d) In accordance with IAS 36: Impairment of Assets, an entity shall assess at the end of each reporting period whether there is any indication that an asset may be impaired. If any of such indications exist, the entity shall estimate the recoverable amount of the asset. However, some assets would require mandatory testing for impairment. Required: Outline assets that require mandatory testing for impairment in accordance with IAS 36: Impairment of Assets.
The main difference between U.S. accounting standards and international accounting standards when accounting for plant, property and equipment is a. international accounting standards require the use of current fair value with changes recognized in equity only. b. U.S. accounting standards do not allow the write-down of assets due to impairment. c. international accounting standards allow plant, property and equipment to be stated at current fair value with changes recognized in income or equity. d. U.S. accounting standards allow plant, property and equipment to be stated at current fair value with changes recognized in income or equity.
1. Many of the accounting standards in GAAP for current asset accounts are with the international standards. Oconverged Oaccordant Oaccrued Oconverted
Which of the following is not true in regard to selling fixed assets? a.If the selling price is more than the book value, a gain is recorded. b.The cash receipt is recorded. c.The journal entry is similar to discarding fixed assets. d.Accumulated Depreciation will be credited.
Under IFRS, when a company chooses the revaluation model as its accounting policy for measuring property, plant, and equipment, which of the following statements is correct? a. When an asset is revalued, the entire class of property, plant, and equipment to which the asset belongs must be revalued. b. When an asset is revalued, individual assets within a class of property, plant, and equipment to which that asset belongs can be revalued. c. Revaluations of property, plant, and equipment must be made every three years. d. An increase in an asset’s book value as a result of the first revaluation must be recognized as a component of profit and loss.
q24 Which of the following is NOT a step in impairment testing? Select one: a. Calculate the asset’s carrying amount in the books of the entity b. Sell the asset after if the fair value is greater than the recoverable amount c. Calculate the recoverable amount of the asset d. Assess whether there are circumstances that may indicate that the asset should be impaired.
FASB ASC Topic 450, Contingencies, provides accounting guidance for A. the accounting treatment for intangible assets B. depreciable methods for property, plant and equipment C. events, or potential events, that create uncertainty for a company D. business combinations
Accounting depreciation is sometimes referred to more generally as asset depreciation. True or false?
Which of the following statements is true? Question 2 options: a The capitalizable costs of patents are legal fees and other registration costs. b An identifiable tangible asset developed internally is never recognized in the accounts as an asset. c Intangible assets usually have a residual value that must be considered in the amortization of cost. d An intangible asset is usually amortized by a credit to an income account.
TRUE OR FALSE Typically, intangible assets are shown on a company’s balance sheet at fair value.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS