- According to PAS 37, provisions are disclosed only, unless their expected occurrence is remote. A present obligation that is possible and can be measured reliably is disclosed only.
- Costs incurred in research phase are expensed immediately. Provisions shall be reviewed at the end of each reporting period and adjusted to reflect the current best estimate.
- The carrying amount of an investment property under the cost model after one year of acquiring it for ₱1,000,000 cash plus ₱50,000 repairs, ₱20,000 legal costs, and ₱15,000 repairs is ₱968,350 based on straight-line depreciation over its 10 year useful life.
- According to PAS 37, provisions are disclosed only, unless their expected occurrence is remote. A present obligation that is possible and can be measured reliably is disclosed only.
- Costs incurred in research phase are expensed immediately. Provisions shall be reviewed at the end of each reporting period and adjusted to reflect the current best estimate.
- The carrying amount of an investment property under the cost model after one year of acquiring it for ₱1,000,000 cash plus ₱50,000 repairs, ₱20,000 legal costs, and ₱15,000 repairs is ₱968,350 based on straight-line depreciation over its 10 year useful life.
- According to PAS 37, provisions are disclosed only, unless their expected occurrence is remote. A present obligation that is possible and can be measured reliably is disclosed only.
- Costs incurred in research phase are expensed immediately. Provisions shall be reviewed at the end of each reporting period and adjusted to reflect the current best estimate.
- The carrying amount of an investment property under the cost model after one year of acquiring it for ₱1,000,000 cash plus ₱50,000 repairs, ₱20,000 legal costs, and ₱15,000 repairs is ₱968,350 based on straight-line depreciation over its 10 year useful life.
incorrect statement) disclosed only, unless their expected occurrence is remote
According to PAS 37, a present obligation that is
possible and can be measured reliably is disclosed only
The essential elements of an intangible asset do not
include probable outflow of resources embodying economic benefits
Provisions are normally recognized as a debit to ___
or loss and a credit to an estimated liability. Expense
Costs incurred in research phase are expensed
immediately True
According to PAS 38, which of the following may be
recognized as cost of intangible asset? Purchase cost of an externally acquired publishing title
Provisions shall be reviewed at the end of each
reporting period and adjusted to reflect the current best estimate True
On January 1, 20x1, Entity A registers a patent for a
total registration and legal costs of ₱600,000. Entity A estimates that the patent has a remaining useful life of 25 years. How much is the amortization expense for 20x1? P30,000
If the item of PPE is can only be used on one specific
R&D project, the cost of the PPE is capitalized False
Is a liability of uncertain timing or amount → provision,
An essential element of an intangible asset, which means the entity has the ability to benefit from the intangible asset or prevent others from benefitting from it. → control, The costs of self-creating an intangible asset include costs of searching new knowledge and identifying and selecting possible alternatives → research costs, An intangible asset shall be measured initially at → cost, An essential element of an intangible asset, may include revenue from the sale of products or services, cost savings, or other benefits resulting from the entity's use of the asset. → future economic benefits, The cost of intangible asset acquired in a business combination is its ____ at the acquisition date → fair value, The costs of self-creating an intangible asset include costs of designing from selected alternative and using knowledge gained from research → development costs
No provision is recognized for future operating losses
because they do not meet the definitions of a ___ (arising from past events). Liability
A provision is a liability of certain timing or amount
False Even if it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision shall not be reversed False
Only government grants that are related to biological
assets measured at fair value less costs to sell are accounted for under PAS 20. False
Is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date → fair value, A biological asset shall be measured on initial recognition and at the end of each reporting period at its → fair value less costs to sell, Is the management by an entity of the biological transformation of biological assets for sale, into agricultural produce, or into additional biological assets → agricultural activity, Held for use in the production or supply of goods or services or for administrative purposes → owner-occupied property, Land or a building held by the owner or by the lessee under finance lease to earn rentals or for capital appreciation or both → investment property, Those other than consumable biological assets → bearer biological assets, Investment property is initially measured at → cost, Those that are to be harvested as agricultural produce or sold as biological assets → consumable biological assets, Agricultural produce harvested from an entity’s biological assets shall be measured at its → fair value less costs to sell at the point of harvest, Are the incremental costs directly attributable to the disposal of an asset, excluding finance costs and income taxes → costs to sell
The distinguishing characteristic that identifies an
investment property from the other assets of an entity is it generates separately identifiable cash flows from the other assets of the entity
Entity A acquires an investment property
for ₱1,000,000 cash. Additional costs incurred are as follows: Repairs and remodelling before occupancy, ₱50,000. Legal costs of transferring title to the property, ₱20,000. Repairs after occupancy, ₱15,000. The investment property is estimated to have a remaining useful life of 10 years and a residual value equal to 5% of initial cost. Entity A uses the straight- line method of depreciation. The investment property has a fair value of ₱980,000 at the end of P980,000
Biological assets and agricultural produce are
accounted for under PAS 41 only when they relate to agricultural activity. True Entity A acquires an investment property for ₱1,000,000 cash. Additional costs incurred are as follows: Repairs and remodelling before occupancy, ₱50,000. Legal costs of transferring title to the property, ₱20,000. Repairs after occupancy, ₱15,000. The investment property is estimated to have a remaining useful life of 10 years and a residual value equal to 5% of initial cost. Entity A uses the straight line method of depreciation. How much is the carrying amount of the investment property under the cost model after one year? P968,350
Biological transformation comprises asset changes
through growth and procreation only. False
Entity A acquires a building for ₱1,000,000. The
building is to be leased out under various operating leases. The building has an estimated useful life of 10 years and zero residual value. Entity A uses the cost model for its property, plant and equipment and the fair value model for its investment property. At the end of Year 1, the building is assessed to have a fair value of ₱1,080,000. How much should Entity A recognize in profit or loss in relation to the building? P80,000 gain on change in fair value Which of the following qualifies for classification as an investment property? Property that is currently being developed for future use as investment property
Biological asset is initially and subsequently measured