Fixed Assets Flashcards
Can there be a gain on the revaluation of intangible assets?
Yes.
Under IFRS fair value model, changes in value on rental property are reported….
As profit or loss in the current period. (WTF I know…)
Land was purchased and a building sold to prepare the land for use. The proceeds from the building are…
Deducted from the cost of the land.
When capitalizing interest, what is the equation for figuring how much of the interest to capitalize.
Take the average building expenses (Beginning of year (0) plus end of year/2) and multiple the interest amount by that.
A like kind exchange with commercial substance, the new asset should be valued…
At the fair value of the asset surrendered.
A like kind exchange that lacks commercial substance (no monetary value exchanged) record new asset at…
Book value of old asset.
Do you depreciate software created for internal use?
Yes, over the expected life of the software.
Do you acknowledge gains/losses on donated assets?
Yes. Yes you do.
The test for the recoverability of operational assets include…
Undiscounted cash inflows minus related cash outflows.
An asset is replaced with a different asset. Should the information of the old asset be used to calculate the base for the new asset?
No. This is not a like kind exchange (may qualify for tax methods, but not for accounting methods)
How is investment property leased out depreciated under IFRS?
It’s not depreciated.
Is training employees to use a created software program capitalized or expensed in the same year?
Expensed, yo.
How must private companies measure GoodWill impairment?
Under a hypothetical acquisition method.
Should you capitalize R&D equipment for current period only/equipment for future and current?
Only depreciate the one for future. Expense the one for current.
Once the decision is made to dispose of an asset, move the asset to…
Other assets. It is no longer PPE.
