PPE

Question 1

An item of PPE shall be recognized as an asset when…

Answer 1

• It is probable that future economic benefits associated with the asset will flow to the entity.
• The cost of the asset can be measured reliably.

Question 2

Initial measurement of PPE at recognition:

Answer 2

Shall be measured at cost.

Question 3

Cost of PPE is…

Answer 3

The amount of cash or cash equivalent paid and the fair value of the other consideration given to acquire an asset at the time of acquisition or construction.

Question 4

After initial recognition, an entity shall choose either as the accounting policy for their PPE;

Answer 4

Cost Model

or

Revaluation Model

Question 5

The accounting policy shall be ________ to an entire class of PPE.

Answer 5

Applied

Question 6

…means that PPE are carried at cost less any accumulated depreciation and any accumulated impairment loss.

Answer 6

Cost Model

Question 7

…means that PPE are carried at revalued carrying amount.

Answer 7

Revaluation Model

Question 8

The revalued carrying amount is the…

Answer 8

Fair value at the date of revaluation LESS any subsequent accumulated depreciation and subsequent accumulated impairment loss.