True or False (No need for explanation) 1. Profit on self-construction is not allowed to be recognized in the accounts 2. If the actual construction cost is less than the normal cost of the asset, the profit emerges in the accounts through lesser interest costs throughout the construction period 3. The asset acquired by exchange of non-monetary assets is generally recorded at the fair value of the asset given 4. The asset acquired is recorded at the carrying amount of the asset given up if both the fair value of the asset given up and asset received are not reliably measurable, or if the exchange transaction has commercial substance. 5. The depreciation method should reflect the pattern in which the asset's economic benefits are consumed by the enterprise 6. Under the components approach, each part of an item of PPE with a cost that is significant in relation to the total cost shall be depreciated separately. 7. The useful life of PPE shall be reviewed annually, and if expectations are significantly different from previous estimates, the depreciation charge for the current and future periods should be adjusted - no retrospective adjustment is required 8. The useful life of PPE shall be reviewed annually, and if expectations are significantly different from previous estimates, the depreciation charge for the current and future periods should be adjusted - retrospective adjustments are required. 9. Under the cost model, an item of PPE is carried at its cost less any accumulated depreciation and accumulated impairment losses 10. Under revaluation model, an item of PPE is carried at its fair value at the date of revaluation less any subsequent accumulated depreciation and accumulated impairment losses 11. If an asset's carrying amount is increased as a result of revaluation, the increase shall be credited directly to equity under Retained Earnings 12. If prior to revaluation increase, a revaluation decrease related to the asset was recognized as an expense, the revaluation increase is recognized as an income to the extent that it reverses the revaluation decrease related to that asset.
True or False (No need for explanation)
1. Profit on self-construction is not allowed to be recognized in the accounts
2. If the actual construction cost is less than the normal cost of the asset, the profit emerges in the accounts through lesser interest costs throughout the construction period
3. The asset acquired by exchange of non-monetary assets is generally recorded at the fair value of the asset given
4. The asset acquired is recorded at the carrying amount of the asset given up if both the fair value of the asset given up and asset received are not reliably measurable, or if the exchange transaction has commercial substance.
5. The depreciation method should reflect the pattern in which the asset's economic benefits are consumed by the enterprise
6. Under the components approach, each part of an item of PPE with a cost that is significant in relation to the total cost shall be
7. The useful life of PPE shall be reviewed annually, and if expectations are significantly different from previous estimates, the depreciation charge for the current and future periods should be adjusted - no retrospective adjustment is required
8. The useful life of PPE shall be reviewed annually, and if expectations are significantly different from previous estimates, the depreciation charge for the current and future periods should be adjusted - retrospective adjustments are required.
9. Under the cost model, an item of PPE is carried at its cost less any
10. Under revaluation model, an item of PPE is carried at its fair value at the date of revaluation less any subsequent accumulated depreciation and accumulated impairment losses
11. If an asset's carrying amount is increased as a result of revaluation, the increase shall be credited directly to equity under
12. If prior to revaluation increase, a revaluation decrease related to the asset was recognized as an expense, the revaluation increase is recognized as an income to the extent that it reverses the revaluation decrease related to that asset.
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