14

IFRS permits the presentation of plant assets at their fair market value because __________.

U. S. GAAP requires this presentation

fair market value may be more relevant

fair market value is easier to compute than book value

financial statements users are indifferent to how plant assets are presented

Question 13

Which of the following is included in the cost of a plant asset?

Amounts paid to make the asset ready for its intended use

Regular repair and maintenance costs

Replacement of damaged parts of the asset

Wages of workers who work use the asset in normal operations