Question 11 (2 marks)

Which TWO of the following can be included in the cost of property plant and equipment according to IAS 16?

(i) Legal fees

(ii) Staff training costs

(iii) Initial testing costs

(iv) Initial operating losses

A. (i) and (ii)

B. (iii) and (iv)

C. (i) and (iii)

D. (ii) and (iv)

Question 12 (2 marks)

Ala Co is testing its assets for the impairment according to IAS 36 Impairment of Assets. What is the impairment loss if any for the asset X with a carrying amount of $150,000, a value in use of $95,000 and fair value less costs to sell of $105,000

A. $55,000

B. $45,000

C. $10,000

D. $20,500

Question 13 (2 marks)

The A Co enters into a three year lease for an asset with the fair value of $50,000 and the present value of future lease payments of $50,000 on July 1, 2020. The asset has a 10-years useful life and lease-term is for 5 years, after which the asset will be returned back to the lessor.

What is the depreciation charge amount reported in the statement of profit or loss for the year ended June 30, 2021?

A. $5,000

B. $4,500

C. $9,500

D. $10,000

The present value of 50000 / 5 years of lease term.

The right of use asset depreciation is 10000

Question 14 (2 marks)

Please fill the gap

A/an ___________controlled by the entity as the ____________of past events is the definition of __________ according to the IASBs Conceptual Framework for Financial Reporting.

Question 15 (2 marks)

Which of the following will extend the duration of the operating cycle of the company?

A. The payables payment time reduction

B. The receivables collection time reduction

C. The inventory holding period reduction

D. Reduction of time for producing goods