1 point An entity is required to apply PAS 16 to PPE used to develop or maintain biological assets, and mineral rights and mineral reserves. True False Clear selection 1 point The cost model means that PPE are carried at cost less any accumulated depreciation excluding any accumulated impairment loss. True False Clear selection The revaluation model means that PPE are carried at fair value at dispos al date 1 point less accumulated depreciation and impairment loss. True False Clear selection Cost of opening a new facility is capitalized under PAS 16. 1 point True False Professional fees paid during purchase of PPE is capitalized. 1 point True False Option 1 Initial operating gain is capitalized under PAS16. 1 point True False Initial delivery and handling costs are directly attributable costs under PAS 16. 1 point True False 1 point When PPE is acquired on account subject to cash discount, the cost of the PPE is equal to the invoice price gross of discounts. True False 1 point Cash discounts are generally considered as reduction of cost and not as income. True False When the PPE is acquired on a cash basis, the cost of the PPE is the fair value points at revaluation date. True False 1 point When payment of PPE is deferred beyond normal credit terms, its cost is the cash price equivalent. True False Fair value of bonds payable is the least in the order in the measurement of the 1 point PPE during acquisition through bonds payable issuance. True False 1 point Between fair value of bonds payable and Fair value of asset received, the latter is the preferred measurement basis in the acquisition of PPE through bonds payable issuance. True False 1 point Between the Fair value of the property received and Fair value of bonds payable, the former is preferred as measurement basis in the acquisition of PPE through share capital issuance. True False Cost of site preparation is expensed under PAS 16. 1 point True False 1 point The revaluation model means that PPE are carried at revalued amount at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment loss. True False