Exam 21: Non-Current Assets: Revaluation, Disposal and Other Aspects

In rare cases the cost of purchasing a business combination may be less than the sum of the fair values of the identifiable assets and liabilities acquired (bargain purchase). Which of the following statements concerning the requirements of IFRS 3/AASB 3 in this situation is true?

The excess of the purchase price of a business over the fair values of the identifiable net assets acquired is a measure of:

How many of these are mineral resources? Oil Coal Natural gas Uranium

Assume that a machine with a cost of $9000 has accumulated depreciation of $4800 on the date of its disposal. If it was traded-in for $4000 on a new machine and the balance of $2000 was paid in cash what is the profit or loss on disposal of the old machine? (Ignore GST.)

Goodwill is defined in IFRS 3/AASB 3 Business Combinations as:

Which statement relating to the composite-rate depreciation approach untrue?

The basic accounting entry for a revaluation decrease of a non-depreciable asset that is not a reversal of an original increase is which of the following?

On 1 June 2015 Blender Company acquired for $300 000 cash the business of Madcap Inc. The carrying amount of Madcap Inc's net assets at the time of the acquisition was $255 000 while independent valuers calculated their fair value at $275 000. Blender Company should debit 'Goodwill' for the amount of:

Under IAS 41/AASB 141 the basis for recording biological assets in the accounting records is:

Accounting standard IAS 16/AASB 116:

Proceeds from the sale of equipment is what type of account?

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?

Under IAS 36/AASB 136 Impairment of Assets, how many of these statements are true? When an asset's carrying amount is less than its recoverable amount the asset is said to suffer impairment. Impairment losses are accounted for as a revaluation decrease if the revaluation model is used. Impairment losses must be recognised as an expense in that period if the cost model is used.

Which of these is not an example of an intangible asset? i. Trademark ii. Oil and gas reserves iii. Licences iv. Goodwill

Which statement concerning the accounting treatment of intangible assets under IAS 38/AASB 138 is true?

What is the basic accounting entry for an initial revaluation decrease of a non-depreciable asset?

A coal mine was purchased for $400 000. Estimated production is 20 000 000 tons of coal after which the mine will be sold for $40 000. During a recent year 6 500 000 tons of coal were produced and sold. Amortisation for the year would be:

Midlothian Ltd uses composite-rate depreciation rate at 12.5% p.a. for its office equipment. The office equipment account had a $17 000 balance of the beginning of the period and a $33 000 balance at the end of the accounting period. The annual charge for depreciation is:

Which statement relating to revaluations of non-current assets is not true?