Explain the reason for not reporting property and equipment at fair value except in specified circumstances as provided by our textbook authors. What do our textbook authors say is normally used as a guideline?
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Explain the reason for not reporting property and equipment at fair value except in specified circumstances as provided by our textbook authors. What do our textbook authors say is normally used as a guideline?
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- 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?Under IFRS, a loss from the destruction of property in a fi re would most likely be classifi ed as: A . an extraordinary item.Which of the following is not a required disclosure requirement for long-term asset impairment under both U.S. GAAP and IFRS? Group of answer choices the events and circumstances that led to the recognition of the impairment the asset that was impaired the amount of any impairment loss reversal if not separately disclosed in the income statement the method used to estimate the fair value of the asset
- If a company purchases a limited-life intangible asset, they _____________ amortize the asset and they should test the asset for impairment using_______________ a.) should; the recoverability test and then the fair value test. b.) should not; the fair value test only. c.) should; the fair value test only. d.) should not; the recoverability test and then the fair value test.Describe why allow the fair value option for financial assets and liabilities and not for buildings or land?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?
- Which of the following statements about the recoverable amount used in the IFRS impairment test of a long-lived asset is false? Group of answer choices The recoverable amount is the lesser of the fair value of the asset less costs to sell or the asset's value in use. If an asset's recoverable amount is higher than the carrying amount, no impairment loss will be reported. After recognizing an impairment of an asset, the firm carries the asset at its recoverable amount. The recoverable amount may be calculated as the discounted value of expected future cash flows from the asset.Which one of the following is not true concerning the treatment of investment properties under IAS 40? A Following initial recognition, investment property can be held at either cost or fair value. B If an investment property is held at fair value, this must be applied to all of the entity's investment property. C An investment property is initially measured at cost, including transaction costs. D A gain or loss arising from a change in the fair value of an investment property should be recognised in other comprehensive income.in applying code section 183 what deductions reduce the basis of property used in the activity
- Which statement on property, plant and equipment (PPE) is true? * PPE items may include assets lacking physical substance Assets held for sale shall be classified as PPE while unsold As long as an item of PPE provides benefit, regardless of measurability of its cost, it shall be recognized in the books When the amount is immaterial, an item may be expensed outright rather than capitalized as PPE none of the aboveWhich one of the following is not true concerning the treatment of investment properties under LKAS 40? Select one: a. If an investment property is held at fair value, this must be applied to all of the entity's investment property. b. A gain or loss arising from a change in the fair value of an investment property should be recognized in other comprehensive income c. Following initial recognition, investment property can be held at either cost or fair value d. An investment property is initially measured at cost, including transaction costs.Under IFRS, a loss from the destruction of property in a fi re would most likely be classifi ed as: B . continuing operations.
