Fixed Assets

Question 1

Fixed assets are valued at _____ ____ under GAAP

Answer 1

historic cost

Question 2

Donated fixed assets are recorded at ____ _____

Answer 2

fair market

Question 3

Fixed assets under IFRS are valued at either (2):

Answer 3

cost or revaluation

Question 4

Cost model carrying value =

Answer 4

historical cost - acc dep - impairment

Question 5

Revaluation model carrying value =

Answer 5

FV at revaluation date - subsequent acc dep - subsequent depreciation

Question 6

When FV differs _______ from carrying value, a further revaluation is required

Answer 6

materially

Question 7

Revaluation losses are reported on the :

Answer 7

income statement

Question 8

revaluation gains are reported on the:

Answer 8

OCI

Question 9

Impairment is first recorded by reducing any revaluation ______ to zero with further impairment losses reported on the:

Answer 9

surpluses; income statement

Question 10

Improvements/replacements and extraordinary repairs that increase usefulness are:

Answer 10

capitalized

Question 11

Improvements/replacements and extraordinary repairs that increase life reduce:

Answer 11

accumulated depreciation

Question 12

Any additions that increase the quantity of fixed assets are:

Answer 12

capitalized

Question 13

Ordinary repairs are:

Answer 13

expensed

Question 14

All costs incurred up to excavation are included in the cost of ______

Answer 14

land

Question 15

Land improvements (fences, sewage, sidewalks, paving, landscaping, lighting) are:

Answer 15

depreciable

Question 16

Everything from excavation forward is included in the cost of:

Answer 16

buildings

Question 17

Rental or buildings held with the purpose of flipping are considered _____ _____ under IFRS

Answer 17

investment property

Question 18

Investment property measurement models (2):

Answer 18

cost model; fair value model

Question 19

Under the FV model, investment property is reported on the balance sheet at fair value and is not ________

Answer 19

depreciated

Question 20

When the cost model is used, the ___ ____ of the investment property must be disclosed

Answer 20

fair value

Question 21

Once adopted, FV measurement must be applied _______ until the asset is disposed of or can no longer be classified as investment property

Answer 21

consistently

Question 22

Construction period interest should be:

Answer 22

capitalized based on the weighted average of accumulated expenditures

Question 23

Do not capitalized interest cost on fixed assets held ____ or _____ construction period

Answer 23

before; after

Question 24

Only capitalize interest on money actually spent, not on the total amount _______

Answer 24

borrowed

Question 25

The amount of capitalized interest is the lower of:

Answer 25

actual interest cost incurred or computed capitalized interest

Question 26

Borrowed funds that are not used are:

Answer 26

expensed