Non Current Assets

Question 1

What are the two requirements for recognising an intangible asset

Answer 1

Separately identifiable, cost reliably measured

Question 2

How to deal with amortisation in a year of impairment

Answer 2

Amortise up to the date of impairment; if at the end of the year, full years amortisation

Question 3

How do we deal with an asset which moves to an asset held for sale?

Answer 3

IFRS 5 - Assets Held for Sale

Valued at the lower of:
Carrying value and;
Fair value less costs to sell

If impairment arises, recognise immediately in the IS

Disclosure

Question 4

What are the six qualifications to recognise an asset as asset held for sale?

Answer 4

IFRS 5 - Assets Held for Sale

Management committed for a plan to sell
Available immediately for sale
Active plan to find a buyer
Sales is highly probable within 12 months
Active marketed at reasonable price
Unlikely the plan will be significantly changed on withdrawn

Question 5

How to treat Investment Properties

Answer 5

IAS 40 - Investment Properties

Measured at Cost or Fair value (If likely to sell)

Disclosure