Measurement and Recognition Flashcards
How are inventories measured?
Lower of cost and NRV
NRV = amount received - cost of disposal.
How is PPE measured?
Cost or FV
- Subject to impairment testing (RA = Higher of FV-Disposal or VIU)
How is Goodwill measured?
Internally generated - not recognised
Acquisition - FV
Following (cost less impairment)
How is other intangible assets measured?
Internally generated not recognised.
If finite life: cost less accumulated amortisation.
If indefinite life: no amortisation, but impairment (similar to Goodwill)
How is R&D measured?
Research - Expensed when incurred
Development may be capitlised at cost.
How are biological assets measured?
FV
How is cash measured?
Face value
How is AR measured?
Face value - doubtful debts
How are equity investments measured?
Fair value - (e.g. shares)
No significant control (normally held for sale)
How are associated companies measured?
Equity accounting
How are debentures/bond investments measured?
Fair value or amortised cost if held to maturity.
How are trading financial instruments measured?
Fair value
How are derivatives measured?
Fair value
How are accounts payable measured?
Face value
How are employees benefits and provisions measured?
Value in use (estimated current settlement cost to the entity)
