Other

Question 1

Where does AASB 116 require asset revaluation losses to be recognised in

Answer 1

Profit and Loss

Question 2

Where does AASB 116 require asset revaluation gains to be recognised

Answer 2

Other Comprehensive Income (OCI)

Question 3

What is the title for AASB 116

Answer 3

Property Plant and Equipment

Question 4

How is Profit and Loss described according to AASB 101

Answer 4

Profit or loss is the total of income less expenses, excluding the items of other comprehensive income

Question 5

AASB 101 para 97 requires the seperate disclosure of

Answer 5

the nature and amount of material items in income and expense

Question 6

The statement of profit and loss and other comprehensive income must be presented as either

Answer 6

a single statement presented in 2 sections or 2 seperate statements (both p&l followed by OCI)

Question 7

AASB 116 para 7 PPE recognised as a asset if

Answer 7

it is probable that future economic benefits associated with the item will flow to the entity, and the cost of the item can be measured reliably

Question 8

AASB 116 para 15 the initial measurement is

Answer 8

the cost of the asset (purchase price and directly attributable costs)

Question 9

AASB 116 para 62 states 3 methods of depreciation

Answer 9

Straight line method, diminishing balance method, units of production method

Question 10

journal entry for depreciation

Answer 10

dr depreciation expense, cr accumulated depreciation

Question 11

AASB 13 fair value measurement states

Answer 11

The price that would be received between market participants at the measurement date

Question 12

AASB 116 para 31 revaluation model

Answer 12

applies to PPE whose fair value can be measured reliably shall be carried at a revalued amount

Question 13

journal entry for asset revaluation (increase)

Answer 13

dr asset, cr gain on revaluation (oci), (end of f/y) dr gain on revaluation (oci), cr asset revaluation surplus (equity)

Question 14

journal entry for asset revaluation (decrease)

Answer 14

write off accumulated depreciation dr accumulated depreciation, cr asset, then write down asset dr downward revaluation of asset, cr asset

Question 15

What 2 phases must an entity classify internally generated intangible assets into?

Answer 15

Research phase and development phase

Question 16

When can an R&D project be recognised as an intangible asset?

Answer 16

When it enters the development stage - but only if an entity can distinguish between research and development and satisfies all 6 recognition criteria under AASB 138 para 57

Question 17

Under AASB 138, when can goodwill be recognised as an intangible asset?

Answer 17

Only when goodwill has been acquired, internally generated goodwill cannot be recognised

Question 18

What is the title for AASB 138

Answer 18

Intangible assets

Question 19

What is the title for AASB 137

Answer 19

Provisions, contingent liabilities and contingent assets

Question 20

AASB 137 defines a contingent liability as

Answer 20

a possible obligation that arises from past events OR a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the liability cannot be measured reliably

Question 21

Contingent liabilities are not recognised in the financial statements because

Answer 21

they either do not meet the definition of a liability or do not meet the recognition criteria

Question 22

When should a provision be recognised under AASB 137

Answer 22

an entity has a present obligation as a result of a pst event, it is probable that an outflow of economic resources will be required to settle the obligation, and a reliable estimate can be made

Question 23

What are the 3 valuation techniques for measuring fair value?

Answer 23

market approach (direct observation of identical asset), income approach (convert future amounts to a single current discounted rate) and cost approach (current replacement cost)

Question 24

What is the title of AASB 102

Answer 24

Inventories

Question 25

What is the definition of inventories under AASB 102

Answer 25

Inventories are assets:
(a) held for sale in the ordinary course of business;
(b) in the process of production for such sale; or
(c) in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Question 26

Net realisable value is

Answer 26

the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Question 27

Fair value is

Answer 27

the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.