Assets

Question 1

When is an item recognised as an asset?

Answer 1

• Future economic benefit will flow to the entity

- cost of asset can be measured reliably

Question 2

What does IAS 38 recognise revenue expenditure on research as?

Answer 2

Expense

Question 3

What is Fair value?

Answer 3

Price that would be received to sell an asset or transfer a liability

Question 4

What does IAS 36 refer to?

Answer 4

Non-Current Assets

Question 5

What is impairment loss?

Answer 5

When recoverable amount is less than carrying amount

Question 6

What does IAS 16 set out?

Answer 6

Accounting Treatment for leases

Question 7

What is a right of use asset?

Answer 7

Term is used where a lessee has the right to use an identified asset for lease term.

Question 8

What does IAS 2 state that inventories should be valued at?

Answer 8

Lower of cost and net realisable value

Question 9

What is value in use?

Answer 9

Present value of future cash flows expected to be derived from the asset, including cash flows from it’s ultimate disposal