18, 19, 20 T/4 Flashcards
PAS 41 Agriculture applies to all biological assets, including bearer plants
F
PAS 41 Agriculture applies to agricultural produce after the
point of harvest.
F
PAS 41 Agriculture does not apply to land used in growing
agricultural produce.
T
Biological assetis living animal or plant.
T
Agricultural produce is harvested product from a biological
asset before any processing
T
PAS41 applies to both’consumable and bearer Plants.
F
Agricultural productivity is the management by an entity of
the biological transformation of biological assets for sale, into agricultural produce, or into additional biological assets.
F
According to PAS 41, biological assets are measured at the
lower of carrying amount and fair value less costs to sell.
F
According to PAS 41, agricultural produce are
initially and subsequently measured at fair value less costs to sell.
F
Costs to sell are the incremental costs directly attributable to the disposal of an asset, excluding finance costs and income taxes but including transport costs
F
The grant is considered a grant related to asset.
T
The income from the government grant in 20x1 is P200,000.
F
Entity X shall not recognize any income from the government granț until the building is constructed and depreciation starts to be recognized.
T
If no depreciation is recognized on the building, no income is also recognized from the government grant.
5. Income from government grant recognized in 20x2 is P200,000.
T
Income from government grant recognized in 20x2 is P200,000.
F
If Entity X uses gross presentation, the carrying amount of the building in the December 31, 20x2 financial statements is P6M.
T
If Entity X uses net presentation, the carrying amount of the building in the December 31, 20x2 financial statements is P4M.
T
If Entity X uses gross presentation, the depreciation expense in the December 31, 20x3 financial statements is P600,000,
T
If Entity X uses net presentation, the depreciation expense in the December 31, 20x3 financial statements is P400,000.
T
If Entity X uses gross presentation, the carrying amount of the deferred income from government grant in the December 31, 20x3 financial statements is P1,400,000.
F
A reporting entity may capitalize borrowing costs ifit chooses to do so.
F
A qualifying asset is one which is ready for its intended use
upon acquisition.
F
Depending on the circumstance, inventories can be qualifying assets.
T
According to PAS 23, the capitalization of borrowing costs
shall be suspended during periods of temporary delay in the construction of a qualifying asset.
F
Heater Co. obtain a loan specifically to inance the
construction of a qualifying asset. Heater Co. incurs P10
borrowing costs on the loan and earns P2 income from
temporary investments f excess loan proceeds. The
borrowing cost to be capitalized is P12.
F
