AASB revision

Question 1

What is the title of AASB 16?

Answer 1

Leases

Question 2

What is a lease?

Answer 2

A contract that conveys the right to use an asset for a period of time in exchange for consideration

Question 3

What is the recognition component of a lease under AASB 16?

Answer 3

Recognise a asset (right-of-use) and liability (obligation to make lease payments) at commencement of the lease

Question 4

What does AASB 138 define an intangible asset as?

Answer 4

an identifiable non-monetary asset without physical substance

Question 5

What is the title of AASB 138?

Answer 5

Intangible assets

Question 6

What is the identifiable criteria under AASB 138?

Answer 6

Separable
arising from contractual or other legal rights

Question 7

What is the recognition criteria under AASB 138?

Answer 7

a) it is probable that the future economic benefits that are attributable to the asset will flow to the entity, and
b) the cost of the asset can be measured reliably

Question 8

What is the definition of an accounting policy under AASB 108?

Answer 8

Accounting policies are specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.

Question 9

Example of an accounting policy?

Answer 9

measuring property plant and equipment using the revaluation model as per AASB 116