Answered: Assuming IASB board is considering…

Assuming IASB board is considering amendment to the IAS 16: Property, Plant and Equipment, what changes will you suggest to IASB board based on what you have learnt so far about the standard?

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

ChapterFS: Financial Statements For Mornin' Joe International

Section: Chapter Questions

Problem 6DQ

See similar textbooks

Related questions

Q: What is the intent of FASB Statement 13 and ASU 2016-02?

A: FASB 32 is a statement establishing the guidelines and procedures for reporting leases by lessors…

Q: Requirements: 1 How do you classify eachoftheitems mentioned above? 2. Compute the investment…

A: The assets held by the business for the longer period of time, and which helps to generate revenue…

Q: Under the IAS 16, there is an impairment loss of property, plant and equipment if?

A: IAS 16 refers to international accounting standards related to the property, plant, and equipment…

Q: IAS 36 considers Accounting for Impairment in relation to Intangible Assets. Is this realistic in…

A: The impairment of the assets means a situation in which the market value of the asset is less as…

Q: Who will have control over the operation of the property and decisions involving capital…

A: Real estate properties refers to a tangible property. Real estate property is generally used to…

Q: Access the Codification glossary (“Master Glossary”) to answer the following. a. What is the…

A: a.

Q: Explain, in detail, the way in which the integrity measures that protect the imputation system…

A: Imputation system of taxation involves the process of taxing the profit distributed by a company at…

Q: With reference to IAS 16 (Property, Plant and Equipment), discuss the differences between “the cost…

A: IAS 16 relates to the accounting for property, plant, and equipment unless another standard requires…

Q: Which projects should the company accept? Check all that apply: Project C Project A Project B Submit

A: Honor Code: Since you have posted a question with multiple subparts we will solve only the first…

Q: Discuss the role of the government in supporting MFIs to realize the intended goals citing what MFIs…

A: MFIs is the abbreviation used for Micro financing Institutions which are the financial organizations…

Q: Required: Explain to your friend the principal requirements of MFRS 116 Property, Plant and…

A: The principal requirements of MFRS 116 and the measurement model of P P E and its subsequent…

Q: How can be Preservation and Maintenance of the Property can be done?

A: Preservation and Maintenance of Property can be done as follows: The borrower of the property…

Q: hich of the following statement about expected vesting period agrees with IFRS 2?

Q: compare and contrast the recording of fixed assets under US GAAP and IFRS How would you determine…

A: GAAP (General Accepted Accounting Principles):-It is a collection of rules and standards prepared…

Q: 5) Which of the following costs should always be expensed as incurred? A) the costs of externally…

A: Solution" As per GAAP, internally developed intangible assets are not capitalized unless same is…

Q: Discuss on the right to recognition, and ‘intellectual property rig

A: Intellectual Property Rights (IPRs) are legal rights that protect works and/or inventions made as a…

Q: In the case of a nonmonetary grant, which of the following accounting treatments is prescribed by…

A: As per the provisions of IAS 20, "Accounting for Government Grant and Disclosure of Government…

Q: This question related with MFRS 116 (property,plant and equipment).

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Under U.S. GAAP, what alternatives do companies have to value their property, plant,and equipment?

A: According to US GAAP, the Property,plant & equipment are to be recognized and measured only…

Q: Discuss TWO criteria that must be satisfied for an item of property, plant, and equipment to be…

A: Plant, property and equipment are the assets which fall under the category of the fixed assets to…

Q: how would a private company determine the MARR to be used in evaluating to a project?

A: A company that does not issue its securities to the general public refers to a private company; the…

Q: What is the fair value of the biological assets on December 31, 2021?

A: Biological assets refer to those assets of an organization which are living. It is generally the…

Q: What factors should be considered when deciding whether to renovate a property?

A: Availability of budget as one needs to consider the money factor regarding whether one have…

Q: Discuss the inclusion of the expenses incurred in the initial evaluation and exploration stage of a…

A: Expenses are the expenditure generated during the year in daily course of business to produce the…

Q: when should the organisation recognise the expenses related to restoration/rehabilitation at the…

A: International money coverage Standards (IFRS) offer the premise for money reporting to the capital…

Q: 1.Provide a detailed answer to the following questions including references to the relevant…

A: 1 CGT or Capital Gains Tax is the tax that is paid when an asset is purchased or sold at a…

Q: Identify the following as intangible assets (IA), natural resources (NR), or some other asset (O).…

A: Intangible assets are those assets which do not have physical substance and which we can not see or…

Q: Illustrate the accounting treatment for the above equipment in accordance to the MFRS116 Property,…

A: Depreciation: A charge on the fixed asset that reduces the value of the asset is known as…

Q: Explanation on the disclosure requirements for the accounting treatment of the intangible asset…

A: As quoted by IAS 38, Intangible assets refer to an "identifiable non- monetary asset without…

Q: eporting. To determine the application of respective standards, depend on the nature, business model…

A: IAS 16 is the standard which guides in the valuation of non current assets used in business. IAS 40…

Q: Good day . can you please assist on the following Define the following terms Nationalisation…

A: Nationalisation refers to the process of transferring the ownership of the industries from private…

Q: Under GASB Statement No. 34, which of the following is true of infrastructure?a. Infrastructure must…

Q: Briefly explain the term of ‘biological asset’ and discuss when a biological asset is recognised in…

A: Biological Assets under MFRS 141: Living assets, such as trees, animals, and cannabis, are referred…

Q: what alternatives does FASB ASC Topic 305 provide in assessing the impairment?

A: The financial Accounting standard board provides an an accounting alternative expected to less the…

Q: Methods and rules to be followed in case of reconstitution?

A: Solution- It is often noticed that a partnership firm undergoes restructuring. These changes are…

Q: Identify any differences between U.S. GAAP and International Financial Reporting Standards in the…

A: Property, Plant, and Equipment:Property, plant, and equipment are those assets which are tangible…

Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to theutilization and…

A: Property, plant, and equipment are those assets which are tangible and long-term assets used in the…

Q: Explain how to report and analyze property, plant, equipment, and natural resources.

A: Asset: It refers to the sum total of the economic value of all the resources owned by the company.…

Q: nd u

A: Yes, there items of private properties that should be own privately like home and land and…

Q: Describe how IFRS and U.S. GAAP treat increases in the value of plant assets subsequent to their…

A: Increases in the value of plant assets subsequent to their acquisitions(but before their…

Q: If an entity wishes to change from a cost model to fair value model under IAS 40 – Investment…

A: IAS 40 is one of the accounting standard that is used for investment property. Investment property…

Question

Assuming IASB board is considering amendment to the IAS 16: Property, Plant and Equipment, what changes will you suggest to IASB board based on what you have learnt so far about the standard?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Discuss TWO criteria that must be satisfied for an item of property, plant, and equipment to be recognized under FRS 116 and when should the criteria be applied.
With reference to IAS 16 (Property, Plant and Equipment), discuss the differences between “thecost model” and “the revaluation model” for the subsequent measurement of property, plant andequipment after its initial recognition.
US GAAP generally follows historical cost accounting in reporting property, plant, and equipment (PP&E). IFRS is moving towards fair value accounting with respect to reporting PP&E. Which approach do you think is preferable? What are the pros & cons of each? In your analysis, keep in mind the point of view's of the public users, internal users, and practitioners.
Discuss the primary differences between U.S. GAAP and IFRS with respect to theutilization and impairment of property, plant, and equipment and intangible assets.
This question related with MFRS 116 (property,plant and equipment).
The question is about MFRS 116 (property,plant, and equipment)
One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic. How should any claim for compensation from third parties for impairment be accounted for? How should the recoverability of the carrying amount of property, plant & equipment be accounted for? How should any revaluation surplus from a revalued asset be treated if the revalued asset is disposed of?
If an entity wishes to change from a cost model to fair value model under IAS 40 – Investment Property, when may it do so? Select one: a. When the market for these properties is fluctuation b. When the board of directors approves a change c. When the value of the assets will improve with a revised model d. When a change will result in a more appropriate presentation
Under GASB Statement No. 34, which of the following is true of infrastructure?a. Infrastructure must be recorded and depreciated unless a modified approach is used, in which case, depreciation is not required.b. Infrastructure must be recorded and depreciated in all cases.c. Infrastructure is not to be recorded and depreciated.d. The state and local governments have the option, but are not required, to record and depreciate infrastructure.
One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic.?1) How should any claim for compensation from third parties for impairment be accounted for?2) How should the recoverability of the carrying amount of property, plant & equipment be accounted for?3) How should any revaluation surplus from a revalued asset be treated if the revalued asset is disposed of?4) What additional disclosures should be made if property, plant & equipment are stated at revalued amounts?5) Explain the effect on the company’s financial statements if a company switches from the historical cost principle to the revaluation model? How should this change be accounted for in the financial statements?
This question relate with MFRS 116 (Property, Plant and Equipment)
Which of the following must exist in order for a government to use the modified approach for recording infrastructure?a. An up-to-date inventory of eligible infrastructure assets must be maintained.b. A condition assessment must be performed at least every three years.c. Both of the aboved. Neither of the above