Question
Q1 The following are required disclosures under PAS 16, Property, Plant and Equipment except: Group of answer choices Nature and extent of any government grants
Q1
The following are required disclosures under PAS 16, Property, Plant and Equipment except:
Group of answer choices
Nature and extent of any government grants attached to items of PPE recognized in the books, and the related contingencies, if any.
The estimates made, including the depreciation method, estimated useful life and residual value.
The amount of expenditures recognized in the carrying amount of an item of property, plant and equipment in the course of its construction.
The measurement bases used to determine gross carrying amount.
Q2
An intangible asset with an indefinite useful life is required to be tested for impairment annually, irrespective of any indications of impairment. In determining recoverable amount, the most recent reliable estimation of recoverable amount made in a preceding period may be used in the impairment test for the current period.
Which of the following statements are true regarding (a) requirement(s) for previous recoverable amount to be allowed for use:
- If the intangible asset does not generate cash inflows from continuing use that are largely independent of those from other assets or groups of assets and is therefore tested for impairment as part of the cashgenerating unit to which it belongs, the assets and liabilities making up that unit have not changed significantly since the most recent recoverable amount calculation.
- The most recent recoverable amount calculation resulted in an amount that exceeded the assets carrying amount, regardless if the difference is material or not.
- Based on an analysis of events that have occurred and circumstances that have changed since the most recent recoverable amount calculation, the likelihood that a current recoverable amount determination would be less than the assets carrying amount is probable.
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