Choose the correct statement below: A. Contingent liability is both probable and measurable. B. An intangible asset is an identifiable asset with physical substance. C. A contingent asset is recognized in the period when realized.Lease liability is a current liability.
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Choose the correct statement below:
A.
B. An intangible asset is an identifiable asset with physical substance.
C. A contingent asset is recognized in the period when realized.Lease liability is a current liability.
D. Lease liability is a current liability.
Step by step
Solved in 2 steps
- A lease liability is measured at the fair value of the underlying asset. Question: True or FalseChoose one example of an asset, and referring to the characteristics of assets,explain why your chosen example meets the asset definition criteria.Choose one example of a liability, and referring to the characteristics ofliabilities, explain why your chosen example meets the liability definitioncriteria.Which of the following is a characteristic of a current liability but not a long-term liability? a. Liquidation is reasonably expected to require use of existing resources classified as current assets or create other current liabilities. b. Unavoidable obligation. c. Transaction or other event creating the liability has already occurred. d. Present obligation that entails settlement by probable future transfer or use of cash, goods, or services.
- Pursuant to the conceptual framework, for an item to be characterised as a liability the definition of liabilities must be applicable to the transaction or event, and the recognition criteria should also be satisfied. Applying the definition of liabilities, there are three key components in the definition of ‘liability’, these being:1. There must be an expected future disposition of economic benefits to other entities.2. There must be a present obligation.3. A past transaction or other event must have created the obligation.Required:Take any two examples of liabilities and test if they meet all three requirements.Which of the following elements represents a residual claim? Asset. Liability. Owners' equity.For a depreciable asset, the amount of depreciation recognised shall be in accordance with AASB 116. The asset shall be: a fully depreciated over the shorter of the lease term and its useful life, if there is a reasonable certainty that the lessee will obtain ownership by the end of the lease term. b fully depreciated over the shorter of the lease term and its useful life, if there is no reasonable certainty that the lessee will obtain ownership by the end of the lease term. c fully depreciated over the longer of the lease term and its useful life, if there is a reasonable certainty that the lessee will obtain ownership by the end of the lease term. d fully depreciated over the longer of the lease term and its useful life, if there is no reasonable certainty that the lessee will obtain ownership by the end of the lease term.
- Which of the following is most accurate in describing the measurement of assets and liabilities? a. Fair value should be used as often as possible. b. Assets are marked at historic cost, especially for U.S. GAAP, and liabilities are recorded at present value. c. A number of different methods are allowed for calculating asset and liability values.What are the definition criteria of an asset and a liabilitytrue or false The net defined benefit liability/asset that is presented in the balance sheet is the difference between the FVTA and the PV of DBO, subject to the asset ceiling if appropriate.
- What do you think is the main criteria for the recognition of right of use asset and a lease liability on the part of the lessee?What situations cause us to remeasure a lease liability and right-of-use asset How is that accomplished?Generally accepted accounting principles require that certain leaseagreements be accounted for as purchases. The theoretical basis for thistreatment is that a lease of this type A. Effectively conveys all of the benefits and risks incident to the ownership of property B. Is an example of form over substance C. Provides the use of the leased asset to the lessee for a limited period of time D. Must be recorded in accordance with the concept of cause and effect
