Mining, explorations and other similar extractive businesses are naturally and fundamentallypossessing risk, in addition to uncertain outcome”consequently all expenditures of such activities should be accounted for as expenses  as and when incurred.

Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…

A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…

Q: An asset is considered impaired if: O the fair market value of the asset exceeds the carrying value…

A: In accounting, an asset is considered impaired when its carrying amount (book value) is greater than…

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: 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: Explain the situation that a company (in the extractive industry) expenses all exploration and…

A: An entity is required to consider when it has been deciding on its accounting policies for…

Q: What if noncurrent asset is not a subtitle I can chose from? Is there another heading I can use or…

A: The non-current assets means those assets which are not current assets, i.e. they would benefit the…

Q: Intangible assets are certain nonphysical assets used in operations that confer on their owners'…

A: Non current asset: It implies to an asset having an expected useful life of more than a year and is…

Q: In DCF valuation, capitalizing research and development (R&D) expenditures will not change the…

A: Research and development expenditure can be capitalised at the production stage of the project. This…

Q: Which of the following is not a part of the impairment test of equipment under IFRS? Group of answer…

A: The objective of the question is to identify which of the given options is not a part of the…

Q: Which of the following is not a part of the impairment test of equipment under IFRS? Group of answer…

A: The objective of the question is to identify which of the given options is not a part of the…

Q: Why FASB treat the spending on the search and development as expense why it can’t be treated as long…

A: Accounting Principles: Accounting principles are the regulations and criteria that businesses must…

Q: When identifying undervalued and overvalued assets, which of the following statements is least…

A: While identifying whether the assets are undervalued or over valued, the required rate of return as…

Q: Discuss the risks associated with short selling an asset. Use examples and empirical evidence in…

A: A short-selling of an asset or stock means that the investor sells the borrowed securities…

Q: O To prescribe the accounting treatment for property, plant, and equipment. O To specify the…

A: Lets understand the basics.IAS 16 "Property, plant and equipment" deals with the accounting…

Q: A company could change their intention of use for an intangible asset resulting in the asset no…

A: Yes, a company can change its intention of use for an intangible assets, which may impact how it is…

Q: Do the fixed assets lose their value even though they continue to function and contribute to the…

A: Meaning of Fixed Assets Fixed assets are those assets which are used in the business with the…

Q: ssets intended to be held and used for ircumstances except luctive purposes may suffer from…

A: Impaiment of Asset seeks  to ensure that an entity's assets are not carried at more than their…

Q: What is the primary objective of depletion accounting in natural resource industries?

A: Depletion accounting is an account system used in natural resource diligence similar as mining, oil…

Q: Why is the reporting of investments and fair value required? Justify your response.

A: Investment refers to the deposits made in securities to earn a regular income and capital…

Q: A loss on impairment on a limited life intangible asset is the difference between the asset’s…

A: The objective of the question is to identify the correct method for calculating a loss on impairment…