Fixed Asset Depreciation Flashcards

1
Q

Recognition Criteria

A

Cost can be measured reliably

probability of inflow of economic benefit in future

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2
Q

Measurement at recognition

A

Purchased constructed/manufactured asset are initially measured at cost
Exchanged asset are initially measured at fair value, unless
The exchange transaction lack commercial substance or
Fair value cannot determined

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3
Q

After Recognition

A

Plant and equipment are measure at either two of model.
1 Cost model
cost of asset - accumulated depreciation - accumulated impairment loss

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4
Q

cost componenet

A

Purchase price - trade discount and rebates
Import duties
non refundable purchased taxes
directly attributable cost
estimated cost of dismantlaing removal and site resotroation

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5
Q

depreciation method

A

straight line method
reducing balance method
sum of year digit method
number of unit output method

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