Question 1

Which statement is not correct?

Accepted Answer

A) Agricultural activity involves growth,degeneration and reproduction. 
B) Agricultural activity includes processing into the final product. 
C) Revenue recognition for agricultural produce is covered under the requirements of IAS 18. 
D) Inventory valuation for agricultural produce is covered under the requirements of IAS 2. 
A) Agricultural activity involves growth,degeneration and reproduction. 
B) Agricultural activity includes processing into the final product. 
C) Revenue recognition for agricultural produce is covered under the requirements of IAS 18. 
D) Inventory valuation for agricultural produce is covered under the requirements of IAS 2. B

Question 2

Wilson Inc wishes to use the revaluation model for this property:
 
The fair value for the property is $20,000.What amount would be booked to the "accumulated depreciation" account if Wilson chooses to use the proportional method to record the revaluation?

Accepted Answer

A) $0 
B) $30,000 debit. 
C) $30,000 credit. 
D) $60,000 debit. 
A) $0 
B) $30,000 debit. 
C) $30,000 credit. 
D) $60,000 debit. B

Question 3

The following information is available about Fred Inc's discontinued operations:
 
What single amount will be presented on Fred's statement of comprehensive income?

Accepted Answer

A) $1,400,000 
B) $1,500,000 
C) $1,600,000 
D) $1,700,000 
A) $1,400,000 
B) $1,500,000 
C) $1,600,000 
D) $1,700,000 A

Question 4

Company Nine purchased land for $600,000 some years ago.Fair value was $800,000 at the beginning of this year and $350,000 at the end of this year.
Prepare the journal entry to record this year's revaluation adjustment.

Accepted Answer

@#IMG-DLM& * Loss of $200,000 recorded t

Question 5

When does an entity use the "cost less any depreciation" approach for biological assets?

Accepted Answer

A) At time of initial recognition upon acquisition. 
B) If the entity cannot obtain fair value information. 
C) At time of subsequent measurement on each balance sheet. 
D) If the entity can obtain fair value information. 
A) At time of initial recognition upon acquisition. 
B) If the entity cannot obtain fair value information. 
C) At time of subsequent measurement on each balance sheet. 
D) If the entity can obtain fair value information.

Question 6

How is revaluation of non-current assets accounted for?

Accepted Answer

A) Revaluation surplus is always booked to profit and loss. 
B) Revaluation loss is booked to other comprehensive income. 
C) Cumulative revaluation loss is booked to profit and loss. 
D) Revaluation surplus is not recognized in other comprehensive income. 
A) Revaluation surplus is always booked to profit and loss. 
B) Revaluation loss is booked to other comprehensive income. 
C) Cumulative revaluation loss is booked to profit and loss. 
D) Revaluation surplus is not recognized in other comprehensive income.

Question 7

How should a revaluation entry generally not be booked?

Accepted Answer

A) Using the "proportional method." 
B) Adjusting the difference between fair value and carrying value to profit and loss. 
C) Adjusting the carrying value and accumulated depreciation by the same percentage so that the carrying amount equals fair value after revaluation. 
D) Restating the gross carrying amount to fair value and removing the accumulated depreciation. 
A) Using the "proportional method." 
B) Adjusting the difference between fair value and carrying value to profit and loss. 
C) Adjusting the carrying value and accumulated depreciation by the same percentage so that the carrying amount equals fair value after revaluation. 
D) Restating the gross carrying amount to fair value and removing the accumulated depreciation.

Question 8

What is "fair value"?

Accepted Answer

A) The present value of the future cash flows expected to be derived from an asset. 
B) The amount obtainable from the sale of an asset in an arm's-length transaction less the costs of disposal. 
C) The higher of an asset's fair value less costs to sell and its value in use. 
D) The amount obtainable from the sale of an asset in an arm's-length transaction between knowledgeable,willing parties. 
A) The present value of the future cash flows expected to be derived from an asset. 
B) The amount obtainable from the sale of an asset in an arm's-length transaction less the costs of disposal. 
C) The higher of an asset's fair value less costs to sell and its value in use. 
D) The amount obtainable from the sale of an asset in an arm's-length transaction between knowledgeable,willing parties.

Question 9

Speakspere Partners is scaling back operations;the partnership has the following assets on its books that it is considering for sale:
a.Speakspere has a parcel of land,valued at $1 million,that is currently vacant.The land is located in an area of the city that was undeveloped and Speakspere had purchased it a number of years ago in anticipation of growth.Actual growth has been slower than expected and has in fact been declining since last year.Speakspere is unsure whether a willing buyer can be found under these conditions.
b.Speakspere's operations are located in an office building and a separate storage facility.Speakspere owns the land on which these facilities reside.The partnership is able to vacate the storage facility on short notice and there is an active market for similar storage.As for the office,Speakspere plans to continue its operations,and does not foresee vacating the office space in the immediate future.
Required:
Determine whether Speakspere should present the assets described above as non-current assets held for sale.Be sure to provide any supporting explanation for your conclusions.

Accepted Answer

@#IMG-DLM& *The partnership plans to continue its

Question 10

Smith Inc wishes to use the revaluation model for this property:
 
The fair value for the property is $150,000.Assuming this is the first year of using the revaluation model,what amount would be booked to profit and loss if Smith chooses to use the elimination method to record the revaluation?

Accepted Answer

A) $0 
B) $60,000 debit. 
C) $60,000 credit. 
D) $90,000 credit. 
A) $0 
B) $60,000 debit. 
C) $60,000 credit. 
D) $90,000 credit.

Question 11

Company One purchased land for $900,000 some years ago.Fair value was $450,000 at the beginning of this year and $340,000 at the end of this year.
Prepare the journal entry to record this year's revaluation adjustment.

Accepted Answer

The answer of Company One purchased land for $900,000 some...

Question 12

What is "fair value less costs to sell"?

Accepted Answer

A) The present value of the future cash flows expected to be derived from an asset. 
B) The amount obtainable from the sale of an asset in an arm's-length transaction less the costs of disposal. 
C) The higher of an asset's fair value less costs to sell and its value in use. 
D) The amount obtainable from the sale of an asset in an arm's-length transaction between knowledgeable,willing parties. 
A) The present value of the future cash flows expected to be derived from an asset. 
B) The amount obtainable from the sale of an asset in an arm's-length transaction less the costs of disposal. 
C) The higher of an asset's fair value less costs to sell and its value in use. 
D) The amount obtainable from the sale of an asset in an arm's-length transaction between knowledgeable,willing parties.

Question 13

How is income and expense recognized for biological assets under IFRS?

Accepted Answer

A) Changes in fair value. 
B) Percentage of completion method. 
C) Completed contract method. 
D) Cash basis. 
A) Changes in fair value. 
B) Percentage of completion method. 
C) Completed contract method. 
D) Cash basis.

Question 14

Which of the following is correct with respect to the "reversal of impairment loss"?

Accepted Answer

A) It is defined as the carrying amount less recoverable amount under IFRS. 
B) It is defined as the carrying amount less fair value under ASPE. 
C) It is possible under IFRS if the recoverable amount subsequently rises. 
D) It is possible under ASPE if the recoverable amount subsequently rises. 
A) It is defined as the carrying amount less recoverable amount under IFRS. 
B) It is defined as the carrying amount less fair value under ASPE. 
C) It is possible under IFRS if the recoverable amount subsequently rises. 
D) It is possible under ASPE if the recoverable amount subsequently rises.

Question 15

Wright Now Limited (WNL)was incorporated on January 1,2017 when the sole shareholder invested $7,500,000.This is the only financing the firm needed.WNL used $1,200,000 of the funds to purchase land.WNL developed a single project from 2017-2020.Pertinent financial details of this project are set out below.At the end of 2020 the land was sold for its fair value.
   
Required:
Complete the following table,assuming that WNL uses the historical cost basis of measurement.

Accepted Answer

The answer of Wright Now Limited (WNL)was incorporated on January...

Question 16

Explain how non-current assets that are held for sale should be accounted for.

Accepted Answer

•Enterprises should classify non-current

Question 17

How is "discontinued operations" information presented in the financial statements?

Accepted Answer

A) Summary information is presented as well as a subsequent explanation of more extensive breakdowns of revenues,expenses,taxes,and financing cash flow figures. 
B) A single amount is presented for discontinued operations on the balance sheet. 
C) The net profit from discontinued operations is presented separately. 
D) The net gain or loss from disposal of discontinued operations is presented separately. 
A) Summary information is presented as well as a subsequent explanation of more extensive breakdowns of revenues,expenses,taxes,and financing cash flow figures. 
B) A single amount is presented for discontinued operations on the balance sheet. 
C) The net profit from discontinued operations is presented separately. 
D) The net gain or loss from disposal of discontinued operations is presented separately.

Question 18

Explain the meaning of biological assets and agricultural produce.Classify each of the following items as: biological asset,agricultural produce,or neither.

Accepted Answer

Biological assets are living p

Question 19

Which of the following is correct with respect to the "impairment loss"?

Accepted Answer

A) It is defined as the carrying amount plus recoverable amount under IFRS. 
B) It is defined as the carrying amount less fair value under ASPE. 
C) Under IFRS,it is defined as the sum of the undiscounted cash flows expected from use of the asset. 
D) Under ASPE,it is defined as the sum of the undiscounted cash flows expected from use of the asset. 
A) It is defined as the carrying amount plus recoverable amount under IFRS. 
B) It is defined as the carrying amount less fair value under ASPE. 
C) Under IFRS,it is defined as the sum of the undiscounted cash flows expected from use of the asset. 
D) Under ASPE,it is defined as the sum of the undiscounted cash flows expected from use of the asset.

Question 20

How is a revaluation loss on non-current assets accounted for?

Accepted Answer

A) Revaluation loss is booked to profit and loss. 
B) Revaluation loss is booked to other comprehensive income. 
C) Revaluation loss is booked to profit and loss or to other comprehensive income,depending on any pre-existing revaluation surplus. 
D) Revaluation loss is not recognized in other comprehensive income. 
A) Revaluation loss is booked to profit and loss. 
B) Revaluation loss is booked to other comprehensive income. 
C) Revaluation loss is booked to profit and loss or to other comprehensive income,depending on any pre-existing revaluation surplus. 
D) Revaluation loss is not recognized in other comprehensive income.

Which statement is not correct?

Wilson Inc wishes to use the revaluation model for this property: The fair value for the property is $20,000.What amount would be booked to the "accumulated depreciation" account if Wilson chooses to use the proportional method to record the revaluation?

The following information is available about Fred Inc's discontinued operations: What single amount will be presented on Fred's statement of comprehensive income?

Company Nine purchased land for $600,000 some years ago.Fair value was $800,000 at the beginning of this year and $350,000 at the end of this year. Prepare the journal entry to record this year's revaluation adjustment.

When does an entity use the "cost less any depreciation" approach for biological assets?

How is revaluation of non-current assets accounted for?

How should a revaluation entry generally not be booked?

What is "fair value"?

Smith Inc wishes to use the revaluation model for this property: The fair value for the property is $150,000.Assuming this is the first year of using the revaluation model,what amount would be booked to profit and loss if Smith chooses to use the elimination method to record the revaluation?

Company One purchased land for $900,000 some years ago.Fair value was $450,000 at the beginning of this year and $340,000 at the end of this year. Prepare the journal entry to record this year's revaluation adjustment.

What is "fair value less costs to sell"?

How is income and expense recognized for biological assets under IFRS?

Which of the following is correct with respect to the "reversal of impairment loss"?

Explain how non-current assets that are held for sale should be accounted for.

How is "discontinued operations" information presented in the financial statements?

Explain the meaning of biological assets and agricultural produce.Classify each of the following items as: biological asset,agricultural produce,or neither.

Which of the following is correct with respect to the "impairment loss"?

How is a revaluation loss on non-current assets accounted for?

Fundamentals of Financial Accounting Theory

Conceptual Frameworks for Financial Reporting

Accrual Accounting

Revenue and Recognition

Cash and Receivables

Inventories

Financial Assets

Property, plant and Equipment

Intangible Assets, goodwill, mineral Resources, and Government Grants

Filters

Exam 10: Applications of Fair Value to Non-Current Assets

Which statement is not correct?

Wilson Inc wishes to use the revaluation model for this property: The fair value for the property is $20,000.What amount would be booked to the "accumulated depreciation" account if Wilson chooses to use the proportional method to record the revaluation?

The following information is available about Fred Inc's discontinued operations: What single amount will be presented on Fred's statement of comprehensive income?

Company Nine purchased land for $600,000 some years ago.Fair value was $800,000 at the beginning of this year and $350,000 at the end of this year. Prepare the journal entry to record this year's revaluation adjustment.

When does an entity use the "cost less any depreciation" approach for biological assets?

How is revaluation of non-current assets accounted for?

How should a revaluation entry generally not be booked?

What is "fair value"?

Smith Inc wishes to use the revaluation model for this property: The fair value for the property is $150,000.Assuming this is the first year of using the revaluation model,what amount would be booked to profit and loss if Smith chooses to use the elimination method to record the revaluation?

Company One purchased land for $900,000 some years ago.Fair value was $450,000 at the beginning of this year and $340,000 at the end of this year. Prepare the journal entry to record this year's revaluation adjustment.

What is "fair value less costs to sell"?

How is income and expense recognized for biological assets under IFRS?

Which of the following is correct with respect to the "reversal of impairment loss"?

Explain how non-current assets that are held for sale should be accounted for.

How is "discontinued operations" information presented in the financial statements?

Explain the meaning of biological assets and agricultural produce.Classify each of the following items as: biological asset,agricultural produce,or neither.

Which of the following is correct with respect to the "impairment loss"?

How is a revaluation loss on non-current assets accounted for?

Fundamentals of Financial Accounting Theory

Conceptual Frameworks for Financial Reporting

Accrual Accounting

Revenue and Recognition

Cash and Receivables

Inventories

Financial Assets

Property, plant and Equipment

Intangible Assets, goodwill, mineral Resources, and Government Grants

Filters