Exam 15: Non-Current Assets: Revaluation,disposal and Other Aspects

How many of these statements are true of the composite rate depreciation approach? -The general asset mix of a functional group of assets is assumed to be the same through new assets are added and old assets are sold. -Additions and retirements are assumed to occur uniformly throughout the year. -The method is often used by business entities with many similar assets in one class. -Profits and losses on disposal of assets are debited/credited to the accumulated depreciation account so no losses or profits on disposal are recorded.

Under IAS 41/AASB 141 the basis for measuring biological assets is:

White Ltd acquired the net assets of Black Ltd for $140 000.At the date of purchase the fair value the net assets acquired was: $ Plant and equipment 110 000 Inventory 37 000 Bank overdraft (20 000) The value of purchased goodwill recorded by White Ltd is:

FK Ltd's fleet of delivery trucks (original cost $850 000)had a carrying amount on 1 July 2012 of $470 000.On that date their value was revised to $500 000.Future depreciation charges will be based on which amount?

On 31 December 2014 Millwood Ltd's balance sheet shows motor vehicles at a cost price of $200 000 less accumulated depreciation $50 000.Millwood Ltd uses the cost model to value its assets.On 31 December 2014 an estimate is made that the recoverable amount of the vehicles is $120 000.Under IAS 36/AASB 136 the accounting entry to record the write down of the motor vehicles to recoverable amount is which of the following?