1.In the past provisions for repairs and maintenance were often recorded as liabilities by companies. Explain why this is no longer accepted with reference to the definition of a provision according toAASB137 Provisions, Contingent Liabilities and Contingent Assets. Provide one example of provision which is accepted under the accounting standard.

2.Biological assets have unique characteristics which can differentiate them from other assets. Discuss at least two of the unique characteristics of biological assets.

3.What are the key distinctions between 'income" and 'revenue'? Why do you think the AASB/IASB made these distinctions? Explain with examples.

4.The CEO of Banjo Ltd suggests that the costs of the opening ceremony for a new plant should be included in the cost of the plant rather than being expensed. Do you agree and explain what expenditure should be included in the cost of property, plant and equipment?