An Overview Of Accounting For Assets

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An Overview of the International External Reporting Environment
The Conceptual Framework of Accounting and Its Relevance to Financial Reporting
Theories of Financial Accounting
An Overview of Accounting for Assets
Depreciation of Property, Plant and Equipment
Revaluations and Impairment Testing of Non-Current Assets
Inventory
Accounting for Intangibles
An Overview of Accounting for Liabilities
Accounting for Leases
Share Capital, Reserves and Share Options Employee Bonus Schemes
Accounting for Financial Instruments
Revenue Recognition Issues
The Statement of Comprehensive Income and Statement of Changes in Equity
Accounting for Income Taxes
The Statement of Cash Flows
Events Occurring After the Reporting Date
Related-Party Disclosures
Earnings Per Share
Further Consolidation Issues I: Accounting for Intragroup Transactions
Further Consolidation Issues II: Accounting for Non-Controlling Interests
Further Consolidation Issues III: Accounting for Indirect Ownership Interest
Accounting for Foreign Currency Transactions
Translating the Financial Statements of Foreign Operations
Accounting for Corporate Social Responsibility

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Question 1

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If an asset's carrying amount is less than its recoverable amount,the increase in value is recognised as a gain.

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Question 2

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The IASB Conceptual Framework allows use of a different measurement basis for similar assets as long as this is disclosed in the summary of accounting policies adopted in the notes to the accounts.

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Question 3

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IAS 1 Presentation of Financial Statements requires all current and non-current assets to be presented in the statement of financial position in the order of maturity.

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Question 4

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IAS 16 Property,Plant and Equipment allows both cost and revaluation models to be applied as a measurement basis to one class of property,plant and equipment.

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Question 5

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Previously written-off assets are allowed to be reinstated under IAS 36 Impairment of Assets.

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Question 6

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IAS 8 Accounting Policies,Changes in Accounting Estimates and Errors requires material prior period errors to be corrected retrospectively,in the period when the error was discovered.

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Question 7

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A reporting entity must have legal ownership of an asset to record it as such within its statement of financial position .

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Question 8

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The term 'probable' is described in the IASB Conceptual Framework as meaning that the chance of the future economic benefits arising is more likely rather than less likely.

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Question 9

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Current generally accepted accounting practices require one approach to measurement to be applied to all classes of assets.

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Question 10

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The sum of the total assets of an entity will typically reflect their cost under current generally accepted accounting practices.

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Question 11

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For an asset to be recognised,it is required to possess a cost or other value that can be measured exactly.

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Question 12

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Advertising expenditures are typically expensed as incurred because the future economic benefits are uncertain to occur.

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Question 13

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Mona Lisa is an example of a heritage asset.

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Question 14

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For an asset to be recognised it is essential that it be acquired by purchase or exchange of another asset.

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Question 15

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Future economic benefits can only be derived from the sale of an asset.

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Question 16

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If the expected value in use of an asset is more than its market value,then it is expected that the entity will retain the asset.

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Question 17

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Relevance and faithful presentation are important considerations for determining the format to use for the purposes of presenting the statement of financial position.

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Question 18

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When an asset's recoverable amount is less than the asset's cost,the asset's cost must be written down to recognise an impairment loss.

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Question 19

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IASB 16 states that the cost of property,plant and equipment must include dismantling,removal and site restoration costs.

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Question 20

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Borrowing costs may include amortisations of discounts or premiums related to borrowings.

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