3. S1: An entity shall measure a noncurrent asset or disposal group classified asheld for sale at the lower of carrying amount and recoverable amount.S2: Anoncurrent asset that is to be abandoned shall not be classified as held for salebecause it is unlikely that the noncurrent asset will be sold within twelve months.A. Both statements are trueB. Both statements are falseC. Only statement 1 is trueD. Only statement 2 is true4. In order for a noncurrent asset to be classified as held for sale, the sale mustbe highly probable, which requires the following, except *A. The asset must be actively marketed at a sales price that is reasonable in relationto the fair value.B. Presence of an active marketing programC. Marketing program or plan is unlikely to be significantly changed or withdrawnD. Commitment to a plan to sell the assetO E. None of them

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I for sale at the lower of carrying amount and recoverable amoun current asset that is to be abandoned shall not be classified as he ause it is unlikely that the noncurrent asset will be sold within twe

I for sale at the lower of carrying amount and recoverable amoun current asset that is to be abandoned shall not be classified as he ause it is unlikely that the noncurrent asset will be sold within twe

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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PFRS 5 provides unconditional requirement that the sale of the noncurrent asset held for sale should be expected to qualify for recognitionas a completed sale within one year from the date of classification. A. TrueB. FalseC. SecretD. I dunno
Which of the following is a valid statement regarding "assets held for sale"? X Depreciation continues while the assets are being held for sale. Assets intended for sale within a period of twelve months from the statement of financial position date are classified as current assets. No maintenance costs shall be reported in the income statement during the period in which the asset is held for sale. No further loss is taken up on the decline in the fair value of the asset from the date it is classified as held for sale until the date of actual disposal.
7. Which of the following must be done when accounting for depreciation under IFRS GAAP but can be done under U.S. GAAP? a. Depreciate by function b. Depreciate by nature c. Depreciate by components d. All of these 8. When accounting for contingent liabilities IFRS GAAP defines ‘probable’ as a. likely b. more likely than not c. possible d. none of these 9. When accounting for contingent liabilities U.S. GAAP defines ‘probable’ as a. likely b. more likely than not c. possible d. none of these
Which of the following statements regarding capital asset holding periods is false? Group of answer choices A. Trade dates, rather than settlements dates, are used to determine the date of acquisition and sale. B.The holding period for property received as a gift usually includes the holding period of the donee. C.The holding period for property acquired from a decedent is long term even if the property is sold less than one year after it was acquired. D. A holding period of exactly one year or more is long term.
68 The entity shall measure a non-current asset that ceases to be classified as held for sale at the lower of carrying amount before the asset was classified as held for sale, adjusted for any depreciation, amortization or revaluations that would have been recognized had the asset not been classified as held for sale, and its value in use at the date of the subsequent decision not to sell. Group of answer choices False True
According to PFRS 5, held for sale classification is permitted when a. the non current asset or disposal group is available for immediate sale in its present condition b. the sale is highly probable C. a and b d. the sale actually occurred after the reporting period but before the financial statements were authorized for issue
12. Which of the following statements about the requirements of IFRS 5 is incorrect? a. At the end of the reporting period, when the fair value less costs to sell decreases from the initial recognition of the asset as held for sale, an impairment loss shall be recognized in profit or loss. b. At the end of die reporting period, when the fair value less costs to sell decreases from the initial recognition of the asset as held for sale, an impairment loss shall be recognized in other comprehensive income. c. An entity shall recognize gain from subsequent increase in fair value less cost to sell of an asset O held for sale, but not in excess of the cumulative unrecovered impairment loss recognized for that asset. d. An entity may reclassify an asset held for sale to an asset held for use when management changes its plan for the sale and decides to use the asset for operations.
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.
13 The entity shall measure a non-current asset that ceases to be classified as held for sale at the lower of carrying amount before the asset was classified as held for sale, adjusted for any depreciation, amortization or revaluations that would have been recognized had the asset not been classified as held for sale, and its value in use at the date of the subsequent decision not to sell. True or False
Which of the following statements about MACRS is false?A. Depreciable assets are assumed to have no residual or salvage value.B. Every depreciable asset is assigned to one of ten recovery periods.C. Allowable depreciation methods are based on the assets assigned recovery period.D. None of the above is false. please explain without plagiarism
A noncurrent asset that is to be abandoned should not be classified asheld for sale because A. The carrying amount is recovered principally through continuing use.B. It is difficult to valueC. It is unlikely that the noncurrent asset will be sold within 12 months.D. It is unlikely that there will be an active market for the noncurrent asset
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 1 False False True True Statement 2 True False False True