Matching
Place True or False in front of each of the following statements.
Premises:
Only assets with cash flows that are independent from those of other assets are included in a cash-generating unit (CGU).
The choice of depreciation method is specified in GAAP and does not require the use of professional judgement.
An asset that has been depreciated to its residual value can continue to be depreciated until it reaches a net book value of zero.
Gains and losses from the disposal of property, plant, and equipment are always reported as part of other comprehensive income.
A)capitation
B)coinsurance
A)capitation
B)coinsurance
Changes in the depreciation rate due to changes in the estimate of the asset's useful life are accounted for in the current and future periods.
The term "recoverable amount" with respect to a capital asset's impairment has the same definition under ASPE and IFRS.
Depreciation is the process of allocating the cost of assets in a manner that is consistent with the desired effect on income.
Once a loss has been recognized, IFRS prohibits the subsequent reversal of that loss.
When using the straight-line method, an asset's residual value is deducted in the calculation of depreciation expense.
Responses:
False
True
Correct Answer:
Premises:
Responses:
Only assets with cash flows that are independent from those of other assets are included in a cash-generating unit (CGU).
The choice of depreciation method is specified in GAAP and does not require the use of professional judgement.
An asset that has been depreciated to its residual value can continue to be depreciated until it reaches a net book value of zero.
Gains and losses from the disposal of property, plant, and equipment are always reported as part of other comprehensive income.
A)capitation
B)coinsurance
A)capitation
B)coinsurance
Changes in the depreciation rate due to changes in the estimate of the asset's useful life are accounted for in the current and future periods.
The term "recoverable amount" with respect to a capital asset's impairment has the same definition under ASPE and IFRS.
Depreciation is the process of allocating the cost of assets in a manner that is consistent with the desired effect on income.
Once a loss has been recognized, IFRS prohibits the subsequent reversal of that loss.
When using the straight-line method, an asset's residual value is deducted in the calculation of depreciation expense.
Premises:
Only assets with cash flows that are independent from those of other assets are included in a cash-generating unit (CGU).
The choice of depreciation method is specified in GAAP and does not require the use of professional judgement.
An asset that has been depreciated to its residual value can continue to be depreciated until it reaches a net book value of zero.
Gains and losses from the disposal of property, plant, and equipment are always reported as part of other comprehensive income.
A)capitation
B)coinsurance
A)capitation
B)coinsurance
Changes in the depreciation rate due to changes in the estimate of the asset's useful life are accounted for in the current and future periods.
The term "recoverable amount" with respect to a capital asset's impairment has the same definition under ASPE and IFRS.
Depreciation is the process of allocating the cost of assets in a manner that is consistent with the desired effect on income.
Once a loss has been recognized, IFRS prohibits the subsequent reversal of that loss.
When using the straight-line method, an asset's residual value is deducted in the calculation of depreciation expense.
Responses:
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