Plant & Company plans to convert to IFRSs with a date of transition to IFRSs of 1 January 2X22. Under previous GAAP certain non-derivative financial assets have been derecognized from the statement of financial position in 2x20. Such financial assets would not have been derecognized if IFRSs had been applied at the time that they were derecognized. Select the best response. O Plant & Company must recognize non-derivative financial assets that have been derecognized in accordance with previous GAAP in the opening IFRS statement of financial position if they did not qualify for derecognition under IFRSs. Plant & Company must never recognize non-derivative financial assets that have been derecognized in accordance with previous GAAP. O Plant & Company must not recognize non-derivative financial assets that have been derecognized in accordance with previous GAAP unless they qualify for recognition as a result of a later transaction or event. Plant & Company must determine if the non-derivative financial assets derecognized in accordance with previous GAAP qualify for derecognition at the date of transition to IFRSs, if they do not qualify for IFRSs derecognition at that date they must be recognized in the opening IFRS statement of financial position.
Plant & Company plans to convert to IFRSs with a date of transition to IFRSs of 1 January 2X22. Under previous GAAP certain non-derivative financial assets have been derecognized from the statement of financial position in 2x20. Such financial assets would not have been derecognized if IFRSs had been applied at the time that they were derecognized. Select the best response. O Plant & Company must recognize non-derivative financial assets that have been derecognized in accordance with previous GAAP in the opening IFRS statement of financial position if they did not qualify for derecognition under IFRSs. Plant & Company must never recognize non-derivative financial assets that have been derecognized in accordance with previous GAAP. O Plant & Company must not recognize non-derivative financial assets that have been derecognized in accordance with previous GAAP unless they qualify for recognition as a result of a later transaction or event. Plant & Company must determine if the non-derivative financial assets derecognized in accordance with previous GAAP qualify for derecognition at the date of transition to IFRSs, if they do not qualify for IFRSs derecognition at that date they must be recognized in the opening IFRS statement of financial position.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:Plant & Company plans to convert to IFRSs with a date of transition to IFRSs of 1
January 2X22. Under previous GAAP certain non-derivative financial assets have
been derecognized from the statement of financial position in 2x20. Such
financial assets would not have been derecognized if IFRSs had been applied at
the time that they were derecognized. Select the best response.
Plant & Company must recognize non-derivative financial assets that have
been derecognized in accordance with previous GAAP in the opening IFRS
statement of financial position if they did not qualify for derecognition under
IFRSs.
Plant & Company must never recognize non-derivative financial assets that
have been derecognized in accordance with previous GAAP.
Plant & Company must not recognize non-derivative financial assets that
have been derecognized in accordance with previous GAAP unless they
qualify for recognition as a result of a later transaction or event.
Plant & Company must determine if the non-derivative financial assets
derecognized in accordance with previous GAAP qualify for derecognition
at the date of transition to IFRSs, if they do not qualify for IFRSs
derecognition at that date they must be recognized in the opening IFRS
statement of financial position.
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