General Terminology Flashcards
What is another name for carrying value?
Book value or net asset value
WHat can borrowing costs include
Interest expense
Finance charges
Exchange differences from foreign currency borrowings
Tangible asset recognised?
Probable that future economic benefits will fow to entity
Cost can be measured reliably
How many years is 1 Jan 20X2 to 1 Jan 20X4?
2 years
How many years is 1 Jan 20X2 to 31 Dec 20X4?
3 years
Revaluation model columns?
Narrative
Historical Cost
Revaluation
Reserve
What are proceeds
The total amounts of funds/revenue generated from a particular transaction or activity
What is deferred tax?
Future tax consequences of temporary differences between the carrying amounts of assets and liabilities in FSs and their tax bases
Deferred Tax Liability?
Tax base < carrying amount
Deferred Tax Asset?
Tax base > carrying amount
What is depreciation?
Depreciation is the systematic allocation of the cost of a tangible asset over its useful life
What is accumulated depreciation?
Total amount of depreciation expense that has been recognized on an asset since it was acquired
Depreciation expense length of time in the FS?
Depreciation expense is relevant for one year
When to recognise a cost?
Action verbs before the price (e.g. incurring and spending)
If there’s scrap value?
Always deduct it, no matter the time frame
