#101 PPE & IFRS Flashcards
1
Q
Under IFRS, how often is the remaining useful life and salvage value reviewed?
A
On an annual basis
2
Q
IFRS requires component depreciation, explain.
A
If an asset has multiple components, those components must be depreciated separately.
Ex. A building can be broken down into roofing, plumbing, etc.
3
Q
What are the IFRS rules regarding PPE remeasurement to fair value?
A
PPE can be remeasured at fair value, but non on an individual level. If fair value remeasurement is used, all components of PPE must be remeasured.
4
Q
Regarding PPE and IFRS, if fair value rises above an asset’s original cost how is it recorded?
A
In a revaluation surplus account which is a part of OCI
