If a decision is made to abandon an area of interest, how should any pre-production costs in respect of that area be treated? Explain, what costs should be included in the cost of inventory of an entity involved in the extractive industries.

Q: How is the cost of ending inventory determined when pools are used?

A: A LIFO inventory pool is a method under which the individual units having same physical similarities…

Q: What type of intangible assets are the Trade name, customer Relationship, the Non-Compete agreement,…

A: Types of Assets: Assets is of Two Types: Current Assets and Fixed Assets   1. Current Assets are…

Q: Under PAS 16, when accounting for plant, property, and equipment, a company: O May elect to use the…

A: Solution: As per PAS 16, "An entity shall choose either the cost model or the revaluation model as…

Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…

A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…

Q: What is the criterion a company uses to decide whether to include an expenditure in the cost of…

A: The criterion used by a corporation to determine whether a cost should be included in an asset's…

Q: is amortization of patent included in statement of costs of goods manufactured?

A: The income earned by a corporation after deducting the direct costs of manufacturing its products is…

Q: Explain the difference in the accounting treatment of the cost of developed technology and the cost…

A: Developed Technology relates to those projects that have reached technological feasibility.…

Q: According to FASB Statement No. 34, interest must be capitalized for a. Assets that are ready for…

A: FASB Statement no. 34 provides provisions related to capitalization of interest costs on borrowings.…

Q: For which of the following does IFRS for SMEs not provide a simplification of full IFRS?a.…

A: IFRS for SMEs: The majority of companies are non-traded company. These private companies are called…

Q: Which of the following sets represents a false relationship regarding the accounting for the cost of…

A: Intangibles are those assets which do not have any physical existence, only their value can be felt…

Q: The depreciation method used shall reflect the pattern in which the asset’s future economic benefits…

A: Depreciation is the method of accounting which assign the cost of the physical asset or the tangible…

Q: 5. Which of the following is an element of cost? a. Cost of employee benefits not directly…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: Which cost incurred on equipment does not belong to the group?   Freight on acquisition of…

A: The total cost of acquisition of non cash assets include the acquisition price, freight charges,…

Q: Explain the difference in the accounting treatment of costs incurred to purchaseintangible assets…

A:

Q: Which of the following is not included as part of the cost of an item of property, plant and…

A: Property, Plant and Equipment refers to All fixed Asset having long useful life more than One year.…

Q: Choose the correct.For which of the following does IFRS for SMEs not provide a simplification of…

A:

Q: Which one of the following accounts is an asset similar to work-in-process inventory? Group of…

A: An asset refers to the resource of the business that can be utilized for the purpose of revenue…

Q: Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: Explain how asset impairment differs from depreciation, depletion, and amortization. How do…

A: Depreciation,Depletion and amortization records the usage of a fixed asset over a period of time and…

Q: Examine the impact on turnover ratios of various inventory cost flow assumptions and depreciation…

A: It is the sales proportional to inventory, which primarily indicates the outflow of goods about…

Q: Which of the following is reported as other comprehensive income in accordance with PAS 1,…

A: Lets understand the basics. As per PAS 1 "Presentation of financial statement", following items…

Q: One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant &…

A: IAS 16 Property, plant and equipment outlines the accounting treatment for many forms of property,…

Q: Which is not an expense? *   costs of goods sold or services rendered loss on disposal of a…

A: Expense is the money spent in operations in order to generate revenues.

Q: True or false _________ Costs incurred that are directly attributable to the acquisition of a PPE…

A: Answer

Q: Explain the difference in net income between companies recording impairment under Successful Efforts…

A: Meaning of Net Income Net Income refers to the profits earned by a business after adjusting all the…

Q: After recognition, exploration and evaluation assets are accounted for under the cost model…

A: There are two methods are prescribed by IAS 16 Property, Plant and Equipment for acccount for the…

Q: Choose only the letter of answer Which of the following would not be reported as inventory? *   a.…

A: Ans. The goods or properties which are meant for the purpose of resale and which forms the major…

Q: Which of the following should not be classified as inventory? Land acquired for resale by a real…

A: The term inventory refers to raw material used in production as well as goods produced that are…

Q: Which is not within the definition of an intangible asset? A resource from which future economic…

A: Unlike tangible  Assets  these Intangible Assets  are difficult  to valuate

Q: Depreciation is considered as accounting policy and operational expense for the accounting period.…

A: Depreciation records the usage of a fixed asset over a period of time and allocates its cost to the…

Q: Which of the following applies conservatism to the financial statements of a full cost company?…

A: In accounting, the convention of conservatism, also known as the doctrine of prudence, is a policy…

Q: When is a company justified in inventorying scrap?

A: Scrap:   Scrap is basically the residual material that is left after the manufacturing of a product.…

Q: The right-of-use asset may be measured using the following models except for: Group of answer…

A: The right of use asset is measured by adding the lease liability and initial direct cost of the…

Q: The carrying amount of an item of property, plant and equipment that is subsequently accounted for…

A: The answer is option (3.) [ i.e, the historical cost less any accumulated depreciation and any…

Q: A right of use asset is initially measured at costs and subsequently measured using the  A. Cost…

A: An asset is the resource owned by the company for using it in the future.

Q: 6.) In reference to the determination of goodwill impairment, which of the following statements is…

A: Goodwill impairment occurs when the recognized goodwill associated with an acquisition is greater…

Q: Depletion is different from depreciation and amortization in that depletion is: Multiple Choice O O…

A: Depletion refers to the concept of accrual accounting which is used for assigning the cost of…

Q: Why does the accounting profession make a distinction between internally created intangibles and…

A:

Q: Historical cost is the basis advocated for recording the acquisition of property, plant, and…

A: Historical cost principle: This is an accounting principle which states that the actual cost paid in…

Q: Which among the following does not hold good for Historical cost accounting? a. Historical cost is…

A: Historical costs or the original cost is the cost of the asset used to record in the balance sheet…

Q: Current year’s depreciation charge relating to Equipment used for designing products should be…

A: The depreciation is an expense charged by business on its fixed assets.

Q: Which freight is capitalizable or inventoriable cost by the consignor on the consigned goods under…

A: The consignee is the person who takes the goods from consignor to sell it to final customers. He…

Q: Explain the accounting treatment in the event that an impairment review of a non-current asset which…

A: Impairment loss: It is a decrease in carrying amount of the asset since the fair value is declined.…

Q: A manufacturing plant use for manufacturing a discontinued product is classified on the balance…

A: Property Plant and Equipment :— PPE is the part of Non Current Assets and is in the nature of…

Q: what is the impact if there is. any material misstatement in the goodwill valuation that is on whom…

A: Definition:

Q: Which is not an expense? A. costs of goods sold or services rendered B. loss on disposal of a…

A: Expense means the amount which is spent to for business purpose or for running the business. Expense…

Q: Which of the following factors is NOT considered in determining the useful life of an intangible…

A: Intangible assets are assets that can not be seen or touched. Their effect can only be felt like…