In a service In a service concession arrangement, the operator recognizes? Correctoptiona) The infrastructure as its PPEb) Either a financial asset or an intangible assetc) Always an intangible assetd) Always a financial asset

Explanation of Service Concession Arrangement: A service concession arrangement is a contract…

Answered: In a service concession arrangement,…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 15DQ

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Which of the following intangible assets should not be amortized? a. Copyrights b. Customer lists c. Perpetual franchises d. All of these intangible assets should be amortized.
An operator treats the resurfacing services included in a service concessionarrangement as a separate performance obligation if: A. The resurfacing is to be performed only when the infrastructure deterioratesbelow a specified condition. B. The resurfacing is to be performed only when the infrastructure is used beyond aspecified level of usage.C. The resurfacing is to be performed regardless of the infrastructure’s condition orlevel of usage.D. Any of these. Letter A is incorrect.
Identify the following as intangible assets (IA), natural resources (NR), or some other asset (O). Leasehold
the amortization of intangible assets with finite useful lives is justified by the : a- economic entity assumption b- going concern assumption c- monetary unit assumption d- historical cost assumption
Recall the definition of assets: probable economic benefits obtained or controlled by a particular entity as a result of past transactions or events. Discuss how a leased building might qualify as an asset of the lessee (tenant) under this definition.
Which of the following statement best defines an asset? a. An asset is a resource owned by the entity with a financial value b. An asset is resource controlled by the entity from which future economic benefits are expected to be generated c. An asset is a resource controlled by an entity because of past events d. An asset is a resource controlled by an entity as a result of past events from future economic benefits are expected to be generated
Costs associated with various intangibles of a company may either be expensed when incurred or capitalized and amortized. Such costs might be recorded in any of the following ways: a. charged to the Patent account and amortizedb. charged to the Franchise account and amortizedc. charged to other appropriate asset accounts and amortized or depreciatedd. charged to expense when incurred Required:Indicate how each of the following costs should be recorded by placing the appropriate letter (a through d) in the space provided. ____ 1. Initial fee to acquire a franchise. ____ 2. Design, construction, and testing of preproduction prototypes and models. ____ 3. Legal costs incurred in connection with a successful patent application. ____ 4. Laboratory research aimed at discovery of new knowledge. ____ 5. Cost of purchased equipment that will be used in a series of R&D projects over a ten-year period. ____ 6. Legal costs of the initial incorporation of a business. ____ 7. Cost of a long-term…
Which one of the following is an essential characteristic of an asset? A. The inflow of future economic benefits is controlled by the enterprise B. It must be exclusively owned and must be exchangeable C. The cost of the asset can be measured accurately D. It is a result of either a past or predictable transaction or activity
Which movable assets those are not considered as leasehold improvements?
Question 1. For any single intangible asset that is material to an entity's financial statements, which of the following is required to be disclosed? Select all that apply. A. Remaining amortisation period of the intangible asset B. Carrying amount of the intangible asset C. Line item on the income statement whichtotal amortization is included D. Description of the intangible asset
An intangible asset may be recorded: Select one: a. . at the cost of the asset, which must exclude any additional expenditure required to prepare the asset for use. b. if it is internally generated and fits the definition of an asset and meets the associated recognition criteria. c. if acquired from an external party at a cost. d. at a value other than cost if that value more reliably records the worth of the intangible asset.
Which of the following statements are correct? I. IAS 16 Property, plant and equipment requires entities to disclose the purchase date of each asset II. The carrying amount of a non-current asset is the cost or valuation of that asset less accumulated depreciation III. IAS 16 Property, plant and equipment permits entities to make a transfer from the revaluation surplus to retained earnings for excess depreciation on revalue assets IV. Once decided, the useful life of a non-current asset should not be changed

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In a service concession arrangement, the operator recognizes? Correct option a) The infrastructure as its PPE b) Either a financial asset or an intangible asset c) Always an intangible asset d) Always a financial asset