Exam 13: Fixed Non-Currenttangible Assets

Which of the following is NOT a qualifying asset under IAS 23?

Which of the following would be classified as investment property under IAS40?

The terms 'carrying value' and 'net book value' are interchangeable.

In the classification of assets between current and non-current the essential criterion is the intention of the owner.

The purpose of depreciation is to spread the cost of an asset over its useful life.

An asset has been bought and the following figures apply; purchase price = €10 500,delivery charge = €250,installation cost = €175,annual maintenance costs = €150,spare parts = €100.What cost should be used for depreciation purposes?

Gains on derecognition of non-current assets should be classified in the Profit & loss statement as revenue.

An asset cost €16000,has no scrap value and a useful life of 4 years.Using the reducing balance method with a 40% rate what is the net book value at the end of year 3?

Why should the receipt of a government grant not be credited immediately to the income statement?

IAS 20 distinguishes between grants related to assets and grants related to income.