Chapter 6 - Non-current Assets Held For Sale MULTIPLE CHOICE QUESTIONS MC1 Assets designated as held for sale must be measured at C a. b. C. d. cost. carrying amount. lower of cost and carrying amount. lower of carrying amount and fair value less cost to sell. d. MC2 Which is inc An entity shall classify a non-current asset as held for sale if a. its carrying amount will be recovered through a sale transaction or continuing use. b. its carrying amount will be recovered through a sale transaction. its carrying amount will be recovered through continuing d. if the asset is intended to be disposed of through a sale transaction or abandonment. C. use. MC3 b. An item of property, plant and equipment qualifies to be reported as "Held for Sale". Its fair value less cost to sell exceeds its carrying amount at the date it is reclassified as Held for Sale. For accounting purposes, such an excess shall a. b. C. not be accounted for. be recognized as gain in profit or loss. be recognized as gain in other comprehensive income and transferred to profit or loss at the date of actual disposal. be credited directly to retained earnings. d. d. MC4 Which is inca a. a. A non-current asset classified as "held for sale" must be presented in the financial statements among the non-current, non-financial assets. b in a separate line item in the current assets section. C. in a separate line item in the non-current assets section. d. only in the notes. An entity moved to a new building. The old building is being actively marketed for sale, and the entity expects to complete the sale in four months. Which of the following statements is incorrect regarding the old building? MC5 a. b. C. d. It will be measured at historical cost. It will be reclassified as an asset held for sale. It will be classified as a current asset. It will no longer be depreciated. 312