Vous êtes sur la page 1sur 6

Testbank

to accompany

Applying International
Accounting Standards
by
Alfredson, Leo, Picker, Pacter & Radford

Prepared by
Victoria Wise

John Wiley & Sons Australia, Ltd 2005


CHAPTER 8 Property, plant and equipment

Question 1

When an entity allocates depreciation to the separate parts of an asset and each part is accounted
for separately, the entity is using which of the following approaches to depreciation?

A periodic depreciation;
B segment depreciation;
C replacement cost depreciation;
D components depreciation.

Question 2

Porter Limited owned Land that had been previously revalued up ward by P60 000. The Land
will be revalued downwards at the current reporting date by P20 000. If the company rate of tax
is 30%, the impact of this revaluation on the asset revaluation surplus account is:

A DR P42 000;
B CR P18 000;
C DR P14 000;
D CR P6 000.

Question 3

Chakik Limited acquired Property several years before the current reporting date. The property
has a carrying amount of P90 000. The initial cost was P170 000. At reporting date the property
was revalued down to P50 000; it had not been previously revalued. The adjusting entry to
recognise the revaluation is:

A DR Depreciation P30 000


CR Accumulated depreciation P30 000;
B DR Accumulated depreciation P80 000
DR Expense downward revaluation of property P40 000
CR Property P120 000;
C DR Depreciation P30 000
CR Property P30 000;
D DR Asset revaluation surplus P40 000
DR Accumulated depreciation P80 000
CR Property P120 000.

2
Question 4

When a balance is carried in an asset revaluation surplus account in relation to an asset that has
been derecognised, it is acceptable under IAS 16 Property, Plant and Equipment, to:

A transfer the balance to share capital account;


B transfer the balance to retained earnings;
C recognise the balance in profit or loss of the period in which the asset was
derecognised;
D transfer the balance to a provision account for future asset revaluations.

Question 5

An item of Equipment was acquired for an initial cost of P50 000. The Equipment was revalued
immediately up to P84 000. The Equipment has an expected useful life of 7 years and the
company rate of tax is 30%. The adjustment that must be recognised in the asset revaluation
surplus account is:

A DR Asset revaluation surplus P34 000;


B DR Asset revaluation surplus P23 800;
C CR Asset revaluation surplus P10 200;
D CR Asset revaluation surplus P15 000.

Question 6

Wei Wei Limited uses the revaluation model for measuring its property, plant and equipment
assets. At reporting date, prior to revaluing its assets, the company had a balance in its asset
revaluation surplus account of P50 000. On reporting date Wei Wei Limited revalued its Plant
class of assets down from a carrying amount of P400 000 to P320 000. This class of assets had
been previously revalued upwards by P60 000. The closing balance of the asset revaluation
surplus account to be shown in the financial statements, is:

A CR P50 000;
B DR P10 000;
C DR P30 000
D P0.

Question 7

Jenkins Limited acquired an item of Property at a cost of P50 000. At reporting date
accumulated depreciation amounted to P15 000. The asset was revalued on reporting date to P45

3
000. If the company rate of tax is 30%, the deferred tax item that must be recognised at
reporting date is:

A deferred tax asset P3 000;


B deferred tax liability P3 000;
C deferred tax liability P7 000;
D deferred tax asset P7 000.

Question 8

IAS 16 Property, Plant and Equipment, allows entities the choice of measurement models. The
models from which the choice can be made include:

I II III IV
Liquidation Yes Yes No No
Accrual Yes No Yes No
Initial cost Yes No No Yes
Revaluation Yes No No No

A I;
B II;
C III;
D IV.

Question 9

If a reporting entity chooses to switch from the cost model to the revaluation model for property,
plant and equipment, the periodic depreciation charge will:

A increase;
B decrease;
C not be affected;
D no longer be required.

Question 10

Lim Limited acquired a Plant asset on 1 July 20X3 for P10 000. The asset had an expected life
of 5 years and an estimated residual value of P2 000. On 1 January 20X5 the entity sold the
asset for P9 100. Lim Limited uses the straight-line depreciation method. At the date of sale the
accumulated depreciation is:

A P800;
B P900;
C P1 600;

4
D P2 400.

Question 11

Christou Limited sold an item of Equipment for P16 200. The Equipment initially cost P20 000
and depreciation amounting to P6 400 had accumulated by the date of sale. The difference on
disposal is:

A a gain of P3 800;
B a gain of P2 600;
C a loss of P2 600;
D a loss of P3 800.

Question 12

In relation to the financial statements, IAS 16 Property, Plant and Equipment, requires that the
following disclosures be made for each class of asset:

I. The carrying amount at the beginning and end of the reporting period.
II. Accumulated depreciation.
III. Total additions and disposals.
IV. The total of impairment losses.
V. Fair value at reporting date.

A I, III and IV only;


B I, II, IV and V only;
C I, II III and IV only;
D II, III, IV and V only.

5
ANSWERS

1 D

2 C

3 B

4 B

5 C

6 D

7 B

8 A

9 A

10 D

11 B

12 C

Vous aimerez peut-être aussi