1.These are the following information available for a cash generating unit as at 1 June 2021:

Fair value less cost of disposal = $230 000

Value in use = $249 000

Carrying amount = $260 000

Recoverable amount = ?

Based on the information above, what are the recoverable amount and the amount of impairment loss (if any) for this cash generating unit?

A. Recoverable amount = $249 000 and Impairment loss = $19 000

B. Recoverable amount = $230 000 and Impairment loss = $11 000

C. Recoverable amount = $230 000 and Impairment loss = $30 000

D. Recoverable amount = $249 000 and Impairment loss = $11 000

2.The following information relates to Malcolm Ltd for Tax Year of Assessment 2021:

Tax Loss = $18 900, Tax rate = 30%.

Which of the following is not the appropriate or correct accounting treatment?

Group of answer choices

A. Require the following adjusting entry as below if the recognition criteria for a tax loss is satisfied:

Dr. Deferred tax asset$5 670

Cr. Income tax expense$5 670

B. No current tax liability is recognised for the financial year 2021

C. Require the following adjusting entry:

Dr. Income tax expense$18 900

Cr. Current tax liability$18 900

D. Disclosure as a note to the financial statements is required for the tax loss above as unutilised tax losses

3.On 1 February 2021, Xland Ltd borrowed $150,000 (at an interest rate of 12% p.a.) to finance the construction of its power plant. This loan was repaid on 30 June 2021. The construction of the plant began on 1 February and it was completed on 31 May 2021. Can we capitalise the borrowing cost as part of the cost of the plant?

A. Yes, as the borrowing cost was incurred for a qualifying asset

B. Yes, and to be capitalised for the tenure of the construction

C. No, as the borrowing cost was incurred for a non-qualifying asset

D. No, as the construction did not take a substantial period of time to complete to qualify

4.Irrespective of the method of disposal, accounting treatments follow three basic steps. Which of the following is not one of these steps?

A. Record the considerations received (if any)

B. Record the gain or loss on disposal

C. Include in the accounts the cost (or revalued amount) and the accumulated depreciation

D. Eliminate from the accounts the cost (or revalued amount) and the accumulated depreciation

5.Which among the following is not a valuation technique according to AASB 13?

A. cost approach

B. income approach

C. historical approach

D. market approach