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TRUE/FALSE. write 'T' if the statement is true andF' if the statement is false. 34) A class of property, plant and equipment is a grouping

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TRUE/FALSE. write 'T' if the statement is true andF' if the statement is false. 34) A class of property, plant and equipment is a grouping of assets of a similar nature and use in an entity's operations. 35) Fair value is defined in AASB 116as the amount for which an asset could be exchanged between related parties in a non- arm's lengthtransaction 36) AASB 116allows company directors significant discretion with respect to the timing of 37 Depreciation is recognised evenif the fair value of the asset exceeds its carrying amount provided the asset's carrying amount does not exceed its residual value 38) The cost of an item of property, plant and equipment includes the initial estimate of any costs of dismantling and removing the item and restoring the site on which it is located Depreciation represents the systematic changes in the fair value of an asset over its useful life. 40) Depreciable amount is the cost of an asset, or other amount substituted for cost, less the accumulated depreciation 1) The factors that are to be considered in determining an asset's useful life include legal or similar limits on the use of the asset. 42) An asset's revalued amount comprises its fair value as at the date of the revaluation less any subsequent accumulated depreciation and accumulated impairment losses 43) It may be necessary to engage experts such as registered valuers to obtain valuations for specific assets. 44) The general rule under AASB 116 is that a revaluation decrement for an asset must be recognised in a revaluation surplus equity account. 45) AASB16 Property, Plant and Equipment specifies that an item of property. plant and eqaipment that qualifies for reeognition as an asset is to be measured at its cost. 6) Tangible assets have a physical form and include such as assets as land and buildings motor vehieles, machinery 47) The major general disdosures required by AASB 116 include a reconaliation of the carrying amount of the class of property, plant and equipment at the beginning and end of the period 48) AASB 116Property, Plant and Equipment specifies the rules for the initial measurement of property, plant and equipment assets. 49) AASB 116 makes it dear that GST should only be included in the cost of an item of property plant and equipment when that tax is refundable. 0) The cost of major inspections required as a condition of continuing to operate an item of property, plant and eqaipment should be expensed and recognised in the calculation of profit or loss rather than being recognised in the carrying amount of the item

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