Topic 11 Flashcards
1
Q
Amostization
A
spreading intangible assets cost over its useful life - straight line basis only
2
Q
development costs
A
should only be capitalised when the directors are satisfied that those costs will be recovered at some future date
3
Q
Land
A
not depreciated as it does not have finite useful life
4
Q
Buildings
A
written off over their expected useful life
5
Q
inventory
A
valued at the lower cost & NRV for each separate product
6
Q
Non-adjusting events
A
- not accounted for
- if material, disclose for the notes
7
Q
intangible assets
A
- accounted using cost model
- amortised over their expected useful life
8
Q
capitalisation
A
- expenses which are recognised over a period of time using depreciation or amortisation not in the period that they were incurred
9
Q
disclosed in notes
A
- nature of event
- estimate of the financial effect of the event
- carrying amounts of non-current assets
- useful lives of assets
- revaluations
- depreciation exp
- revenue
- finance costs
10
Q
disclosure of note
A
can be narrative & monetary
