Non-current assets

Question 1

Recognition requirements

Answer 1

A) It is probable that the future economic benefits associated with the item will flow to the entity.
B) The cost can be reliably measured.

Question 2

Standard numbers

Answer 2

PPE - IAS 16
Impairment of assets - IAS 36 
FV measurement - IFRS 13
Intangible assets - IAS 38 
Investment property - IAS 40
Borrowing costs - IAS 23

Question 3

Measurement at recognition and after

Answer 3

Initial:
Purchase price (less trade discounts) + import duties and non refundable taxes + directly attributable costs of bringing the asset to working condition for its intended use + finance costs (capitalised)
After:
Cost less depreciation and any impairments or:
Revaluation model: FV less depreciation and impairment.

Question 4

Revaluations

Answer 4

If 1 asset is revalued so must the rest of that asset class .
Gain on revaluation goes to other comprehensive income and the revaluation reserve.

Decrease is expensed to P&L after cancelling any previous revaluation surplus.

Question 5

Derecognition

Answer 5

Any PPE must be derecognised when no future economic benefits are expected or it has been disposed of. Directly to retained earnings.

Question 6

Impairment of assets IAS 36

Answer 6

Impairment occurs when carrying amount is higher than its recoverable amount. Impairment loss against profits.