Question 15)

Part A

Which of the following statements in relation to the line disclosure Trade and other receivables is incorrect?

A. Trade and other receivables represent the amount expected to be received from customers and other receivables.

B. Trade and other receivables are a financial asset.

C. Trade and other receivables are subject to measurement uncertainty.

D. Trade and other receivables must be a current asset.

E. None - all of these statements are correct.

Part B

Which of the following would NOT be considered a class of property, plant and equipment?

A. A vacant building undergoing a major refurbishment.

B. A long-term asset that does not generate revenue.

C. None of these would be considered a class of property, plant and equipment.

D. Office furniture held for sale in the ordinary course of business.

E. A motor vehicle that has been used for four years of an expected five-year life.

Part C

Takeover Ltd pays $103 million to acquire Target Pty Ltd. At the date of acquisition, the directors of Takeover Ltd determined Target Pty Ltd's net assets had a fair value of $80 million.

State, in $ millions, the goodwill that Takeover Ltd would recognise from this event.

Part D

An item of Plant and equipment is carried under the cost model and at the reporting date, the accounting records reveal the following information:

Cost $173 million

Accumulated depreciation $50 million

The fair value of the asset is estimated to be $110 million and its value-in-use is estimated at $134 million.

State, in $ millions, the carrying amount at which the Plant and equipment would be reported.

Part E

An item of Plant and equipment is carried under the revaluation model and at the reporting date, the accounting records reveal the following information:

Cost $763 million

Accumulated depreciation $595 million

At the same date, the fair value of the asset is estimated to be $607 million and its value-in-use is estimated at $620 million.

State, in $ millions, the carrying amount at which the Plant and equipment would be reported.