TRUE OR FALSE? Once decided by management as an asset held for sale, management can never change its decision to revert back an asset as part of property, plant and equipment.
Q: When an intangible asset has a finite life, amortization should be taken over what period of time?…
A: Amortization of intangible assets is a process that the cost of such an asset is written off over…
Q: TRUE OR FALSE? A piece of machinery can be a noncurrent asset held for sale.
A: Assets held-for-sale are regarded as the non-current assets, which any firm plans to sell in the…
Q: Which of the following statements is true about assessing recoverability of property, plant and…
A: The objective of the question is to identify the correct statement about assessing the…
Q: Which of the following statements is true about assessing recoverability of property, plant and…
A: The objective of the question is to identify the correct statement about assessing the…
Q: Allowable depreciation reduces the basis of an asset whether the depreciation is deducted or not.
A: Allowable depreciation is the depreciation of the asset which is must allowed to deduct from the tax…
Q: It is the expected selling price of a property when the asset can no longer be used by its owner.…
A: Purchase value of assets is cost of assets purchase plus expenses incurred at the time purchase.
Q: Explain the reasons for the impairment and the justification for treating the write-down as a…
A: When the book value or carrying value of the asset is more than the recoverable value of asset, then…
Q: Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the…
A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…
Q: In which of the following situations would a cost incurred after an asset’s acquisition be…
A: Asset A resource with a monetary value that is owned or managed by a person, company, or nation in…
Q: Are litigation costs to defend an intangible asset capitalized or expensed? Explain your answer.
A: Litigation Costs should be capitalised and amortised over the remaining useful life of the related…
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: Which of the following is NOT a way to dispose of an asset? a.Sell it. b.Exchange it for another…
A: solution concept Disposing of the asset Discarding a asset means retiring the asset…
Q: How should intangible assets and property, plant, and equipment (PP&E) be treated when their service…
A: The Answer
Q: What type of intangible asset is the goodwill account? What does it mean to the purchaser if the…
A: Goodwill refers to the intangible asset that arises from the purchase of another company or…
Q: Why would refinancing be an alternative to sale of the property?
A: Individuals always buy the properties taking the mortgage because payment for buying the property…
Q: Which one of the following is not an indicator of the transfer of control to the buyer? Group of…
A: The objective of the question is to identify which of the given options does not indicate the…
Q: A company is most likely to:A. use a fair value model for some investment property and a cost model…
A: SOLUTION:- A company is most likely to change from the fair value model when the company transfers…
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: TRUE OR FALSE If an intangible asset is successfully defended from a legal challenge, the incurred…
A: The term "intangible assets" refers to assets without a physical form. Businesses that have made…
Q: Why would a company choose to depreciate one piece of equipment using the double-declining-balance…
A: Depreciation is a decline in the value of the assets due to day-to-day working and wear and tear…
Q: True or false If you are still using the asset after its estimated useful life is over? You stop…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Inventor's life is not considered in determining the useful life of an intangible asset. TRUE OR…
A: Intangible assets are those assets which does not have any physical existence. That means…
Q: angible assets have all of the following characteristics, except: O they provide benefits to current…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: An entity that acquires an intangible asset may use the revaluation model for subsequent measurement…
A: Lets start with basic understanding. Intangible asset is considered under IAS 38 " Intangible…
Q: When equipment is sold or abandoned, the the books on that particular asset. gross value and…
A: The business has two options for getting rid of the depreciated assets: abandoning them or selling…
Q: 5. 1.) What is the difference between current assets and plant and equipment? Do you think land…
A: AssetsThe resources owned by an individual or business is known as an asset. Enterprises have…
Q: 2. Prepare a depreciation schedule for four years using the double-declining-balance metho only two…
A: The book value should carry forward till the end of 4 years.
Q: What costs are capitalized, or added to the asset account when acquiring property and equipment? A.…
A: Introduction:- Purchase price of plant and equipment consists of purchase price and all other costs…
Q: “Cost written off as depreciation on equipment already purchased is always irrelevant.” Do you…
A: Relevant cost: Relevant cost is the avoidable cost which incurred at the time of the decision-making…
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: It results not from a deterioration in the asset's ability to serve its intended purpose, but from a…
A: Depreciation is less in the value of asset. depreciation is a natural phenomenon in which the value…
Q: If an intangible asset has its fair value determined in an active market, IFRS permits the use of…
A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…
Q: The book value of a plant asset is equal to Select one: the fair value of the asset at the…
A: The book value of a plant asset is a term used in accounting to describe the net value of an asset.…
Q: The key difference between amortization and depreciation is that amortization charges off the cost…
A: In this question, we are required to determine the key difference between depreciation and…
Q: Under IFRS, an intangible asset is considered to be impaired if it carrying value is greater than…
A: According to IFRS 13 and Indian Accounting Standard (IAS) 36, an intangible asset is said to be…
Q: Nonresidential real and residential rental property depreciated using MACRS are not subject to…
A: Nonresidential real and residential rental property depreciated using MACRS are not subject to…
Q: Depreciation, depletion, and amortization deductions are not available for some types of property;…
A: Some assets' costs are not recovered because they do not qualify as trade assets, which is the…
Q: Under IFRS, a company that acquires an intangible asset may use the revaluation model for subsequent…
A: IFRS Policy International Financial Reporting Standards (IFRS) refers to the common set of rules and…
Q: Land is not an asset we depreciate. Explain what it is not treated as an asset we depreciate?
A:
Q: An inaccurate estimate of asset needs can have serious consequences. Explain how?
A: Estimates of assets: Estimate of assets is the estimated worth of assets of original worth of…
Q: Which of the following is a false statement about depreciation? It has no impact on cash It…
A: The accelerated method is a method of charging the depreciation in which the higher amount of…
Q: Which of the following is a CORRECT statement about long-term asset impairment? A. Under U.S.…
A: Long-term asset impairment is the process of recognizing a reduction in the value of a long-term…
Q: n of the following statements' is the fair value model of valuing erty?
A: The answer has been mentioned below.
TRUE OR FALSE?
Once decided by management as an asset held for sale, management can never change its decision to revert back an asset as part of property, plant and equipment.
Step by step
Solved in 3 steps
- Which of the following statements about the recoverable amount used in the IFRS impairment test of a long-lived asset is false? Group of answer choices The recoverable amount is the lesser of the fair value of the asset less costs to sell or the asset's value in use. If an asset's recoverable amount is higher than the carrying amount, no impairment loss will be reported. After recognizing an impairment of an asset, the firm carries the asset at its recoverable amount. The recoverable amount may be calculated as the discounted value of expected future cash flows from the asset.Noncurrent asset or disposal group is classified as "held for sale" when the asset is available for immediate sale and the sale is highly probable. For the sale to be highly probable, which of the following statements is incorrect? a. The asset must be actively marketed for sale at a reasonable price in relation to its current fair value b. Management must be committed to a plan to sell the asset. c. An active program to locate a buyer and complete the plan must have been initiated. d. The sale is expected to qualify for recognition as a completed sale within two years from the date of classification of the asset as "held for sale".Explain what is meant by the impairment of the value of property, plant, and equipment and intangible assets. How should these impairments be accounted for?
- Which of the following statements about depreciation is not true? A. Depreciation does not mirror the actual loss of value over time. B. Depreciation is the allocation of the asset’s cost to expense over the expected years of use. C. If the fair value of the asset increases, depreciation is reversed to reflect the change in value. D. U.S. GAAP requires depreciation methods to be systematic and rational.Which of the following statements is true? Question 2 options: a The capitalizable costs of patents are legal fees and other registration costs. b An identifiable tangible asset developed internally is never recognized in the accounts as an asset. c Intangible assets usually have a residual value that must be considered in the amortization of cost. d An intangible asset is usually amortized by a credit to an income account.Depreciation is the allocation of the cost of a plant asset over its useful life in a rational and systematic manner. The asset being depreciated remains at historical cost and the accumulated depreciation account serves as a contra account to lower the asset balance on the books. Question: Explain why this lowered value is, or is not, the market value of the asset in any given accounting period. Support your answer with examples explaining your choice.
- Write down why do you think there is a problem in CA(current asset) managementtrue or false If an uninsured asset is destroyed by fire, the firm suffers a loss measured by the asset's estimated salvage valueFrom an economic point of view, which activity is regarded as an undertaking to prevent a loss in value, rather than an activity undertaken to add value to the property? maintenance O modernization O rehabilitation O remodeling
- S1: The realization process depends on the type of the property, plant and equipment-if the property, plant and equipment are non-depreciable, the realization of a gain or loss on an intercompany sale must await the property, plant and equipment's resale to outsiders; if the property. Plant and equipment are depreciable, the realization of gain or loss on an intercompany sale occurs on a piece meal basis over the remaining useful life of the property, plant and equipment. S2: Unrealized intercompany gains or losses involving the non-depreciable assets are viewed as being realized gradually over the remaining life of the asset as it is used by the purchasing affiliate. O Only S1 is correct. O Only S2 is correct. O Both statements are correct. O Both statements are incorrect.Internally generated intangible assets are initially recorded at fair value. O True O FalseWhich statement concerning depreciation is false? a.The only property that has a determinable life is depreciable. B.Land is not depreciable. C.Intangible assets' capital costs are recovered through amortization, much like depreciation. D.Personal property converted to business use is not depreciable since it was once used for personal purposes.