It is a type of grant which has a primary condition that an entity must comply which would be related to purchase, construct or otherwise acquire a long term asset?
Q: r future use as investment property b. Property that is leased out to another entity under a…
A: Given: It develops cash flows largely unassisted of other assets carried by a company. It is not an…
Q: Investment Property can be classified under the following methods except? Cost Cost and Fairvalue…
A: Solution: Investment Property can be classified under the following methods except "Cost and Fair…
Q: Which of the following statements is/are true concerning property, plant and equipment (PPE)? I. PPE…
A: Property, Plant & Equipment: These are the Company's non cash, long term, physical or tangible…
Q: Penzema Corporation acquired a property, plant, and equipment through governmental grant. Explain…
A: Accounting treatment for Government Grants Received: The government grants received is considered as…
Q: A general purpose government takes over a special purpose government in an acquisition. The…
A: Introduction: The acquisition refers to the business combination when one entity or organization…
Q: All of the following statements are true, except: * a. When property is acquired in exchange for…
A: Answer: Option D is the Correct answer:
Q: 1. Identifiable intangible assets are those intangible assets that: A. have been purchased by the…
A: Intangible assets are those assets which do not have physical existence.
Q: If an entity was not able to determine the fair value of both the asset received and the asset given…
A: Where the exchange of Assets have a commercial substance (sufficient cash flow can be generated in…
Q: What is the purpose of a special revenue fund? Choose the correct.a. To account for revenues legally…
A: Special revenue fund refers to fund used within governmental body to record proceeds from certain…
Q: Which two models may an entity opt for when accounting for investment property?
A: Investment property is a type of properly held by personnel for the intention of earning returns…
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: Multiple Choice The cost of intangible asset acquired by way of government grant is recorded at Fair…
A: Any intangible Asset which is acquired by way of government grant will be recorded by debiting the…
Q: Identify the items included in the cost of a self-constructed asset and determine the amount of…
A: The self-constructed asset costs included in the asset cost are as follows direct materials direct…
Q: How does the Conceptual Framework define an asset? Select one alternative A resource to which…
A: Introduction : The conceptual frameworks can be understood as the textual or graphical depiction of…
Q: epayment of grant related to an asset?
A: The asset is an economic resource that a corporation or business entity owned for its economic…
Q: Revenue from property taxes should be recorded in the General Fund: O When received. O When there is…
A: The revenues earned by the government or state from the taxes, fees, interest etc. are recorded in…
Q: In the case of grants related to an asset, which of these accounting treatments (balance sheet…
A: Para 8.1 of IAS 20 states that: "Grants related to specific fixed assets are government grants…
Q: A transfer from investment property carried at fair value to owner-occupied property shall be…
A: A shift from investment property to owner-occupied property must be accounted for will be…
Q: a) Public infrastructures
A: Building construction, which is included in the fixed asset value of the building, professional fees…
Q: one of the following is a definition of asset: a- a present economic resource controlled by the…
A: An asset is a resource with economic value that a firm controls in lieu of that it will provide a…
Q: In the case of grants related to an asset, which of these accounting treatments (statement of…
A: As per PAS 20 "Accounting for Government Grant and Disclosure for Government Assistance" 2…
Q: Which of the following assets held by an enterprise would not qualify as investment in property as…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: When an asset acquired through government grants is recorded using the capital approach, Select one:…
A: Answer - According to the capital approach, the government grants are treated as a part of capital…
Q: Which of the following is true regarding government grant related to asset? * a. Depreciation is…
A: Government Grant is the amount of money received as donation from government for the purpose of…
Q: ntangible assets can only be measured using the revaluation model if the acquiring entity:
A: The Answer:
Q: Which one of the following is not true concerning the treatment of investment properties under IAS…
A: If an investment property is held at fair value, this would not apply to all of the entity's…
Q: Which of the following statements is correct?(a) Both IFRS and GAAP permit revaluation of property,…
A: Answer: Option d.
Q: If an entity wants to account for investment property, it may choose between two accounting models.
A: The valuation of investment property is a must have feature in the presentation of the company’s…
Q: -Select- assets include the rights established by law or contract to the future use of property…
A: According to the IFRS, intangible assets are identifiable, non-monetary assets without physical…
Q: Included in the requirements for an intangible asset arising from development (or from the…
A: An intangible asset is the type of resource which cannot be touched or seen. It gives the authority…
Q: If the entity uses the fair value model for investment property, which statement is true? a. The…
A: Fair value of investment property means value at which property can be exchanged in open market.…
Q: All of the following statements are true, except: When property is acquired in exchange for…
A: The property, plant, and equipment are recorded as a tangible asset of the company. it is acquired…
Q: Investment property includes all of the following, EXCEPT: A. For sale in the ordinary course of…
A: Introduction:- Investment property is property that an entity purchase to earn rental income and/or…
Q: Determine the initial cost of property, plant, and equipment and intangible assets acquired in…
A: Property, Plant & Equipment (PPE) is valued at their historical cost or initial acquisition…
Q: Which of the following is true about use of the modified approach? Choose the correct.a. It can be…
A: The government uses a different way to report their financial statements than the private sector…
Q: Which of the following statement best defines an asset?
A: As question is MCQ type it will be answered with explanation.
Q: Government grants are recognized only when there is reasonable assurance that the entity will comply…
A: Government Grants Government grants which are provided by the government to the needy entity. There…
Q: 14 A government entity accounts for transfers to or from investment property at cost, no gain or…
A: Answer:- True Explanation :- The investment property is transfer and invested in cost there will be…
Q: The amount due from or at the direction of the grantor is accounted for by the operator from the…
A: When the operator recieves a financial asset from the grantor, it is measured at fair value.
Q: Recall the definition of assets: probable economic benefits obtained or controlled by a particular…
A: Lease: It is a legal contract between two or more parties for renting a property, land, or any other…
Q: A donated fixed asset （from a governmental unit) for which the fair value has been determined should…
A: The resources that a firm employs in its commercial activities are referred to as assets. A donated…
Q: An intangible asset may be recorded: A. if acquired from an external party at a cost. B. if it is…
A: Answer - Correct Option is A. if acquired from an external party at a cost.
Q: Which of the following buildings shall be classified as investment property? O Building owned and…
A: The question is based on the concept of Accounting Standard on Investment Property.
It is a type of grant which has a primary condition that an entity must comply which would be related to purchase, construct or otherwise acquire a long term asset?
Step by step
Solved in 2 steps
- The amount due from or at the direction of the grantor is accounted for by the operator from the contract that is in the form of Financial asset as:fair value through other comprehensive incomeamortized costany of thesefair value through profit or lossFor borrowing costs to be capitalized as part of the cost of a qualifying asset, the following conditions must be met, except a, The enterprise undertakes activities to prepare the asset for intended use or sale. b.The enterprise incurs expenditures for the asset c. The enterprise incurs borrowing costs. d. The construction is substantially completed and the asset is ready for intended use.For borrowing costs to be capitalized as part of the cost of a qualifying asset, the following conditions must be met, except The enterprise incurs expenditures for the asset The enterprise incurs borrowing costs. The construction is substantially completed and the asset is ready for intended use. The enterprise undertakes activities to prepare the asset for intended use or sale.
- A donated fixed asset （from a governmental unit) for which the fair value has been determined should be recorded as a debit to Fixed Assets and a credit to: a. Contributed Capital b. Retained Earnings c. Deferred Income d. Other IncomeAll of the following statements are true, except: When property is acquired in exchange for another, its cost is usually determined by reference to the fair value of the asset surrendered When a group of assets is acquired for a lump sum price, the lump sum price should be allocated to the individual assets based on their carrying values. Donation of PPE should be recorded at the fair value of the donated asset Property acquired in exchange for shares or other securities of the enterprise should be recorded at its fair value or the fair value of the securities, whichever is more clearly evidentWhich of the following is not a condition that must be satisfied before interest capitalization can begin on a qualifying asset? Interest cost is being incurred. Expenditures for the assets have been made. The interest rate is equal to or greater than the company's cost of capital. Activities that are necessary to get the asset ready for its intended use are in progress.
- Which of the following is true regarding government grant related to asset? *a. Depreciation is higher and net income lower if the grant is recorded as deferred revenueb. Depreciation is higher and net income lower if the grant is an adjustment to the assetc. Depreciation is higher if the grant is a deferred revenue and net income is not affectedd. Depreciation is higher if the grant is adjustment of the assetWhich of the following statements is/are true concerning property, plant and equipment (PPE)?I. PPE acquired by donation should be recorded at the fair value of the donated asset at the time of donation. II. When a group of assets is acquired for a lump-sum price, the total cost should be allocated to the individual assets based on their carrying amounts.III. Property acquired in exchange for shares or other securities in the enterprise should always be recorded the fair value of the securities issued.IV. When a property is acquired in exchange for another asset and both the fair value of the asset given up and the asset received are clearly determinable, its cost is usually determined by reference to the fair value of the asset given up. V. When an asset is acquired under a deferred payment plan, the asset is recorded at its cash equivalent price. If the cash equivalent price is not reliably determinable, the asset cost if the total of the undiscounted future cash payments required by…An entity starts the capitalization of borrowing costs to the cost of a qualifying asset when * A. Expenditures for the asset are being incurred. B. Borrowing costs are being incurred. C. Activities necessary to prepare that asset for its intended use or sale are being undertaken. D. All of the above conditions are met.
- Explain the recording of repayment of grant related to an asset?All of the following statements are true, except: * a. When property is acquired in exchange for another, its cost is usually determined by reference to the fair value of the asset surrendered b. Property acquired in exchange for shares or other securities of the enterprise should be recorded at its fair value or the fair value of the securities, whichever is more clearly evident c. Donation of PPE should be recorded at the fair value of the donated asset d. When a group of assets is acquired for a lump sum price, the lump sum price should be allocated to the individual assets based on their carrying values.Which of the following is not a condition that must be satisfied before interest capitalization can begin on a qualifying asset? A) Activities that are necessary to get the asset ready for its intended use are in progress. B) The interest rate is equal to or greater than the company's cost of capital. C) Interest cost is being incurred. D) Expenditures for the assets have been made.