Penzema Corporation acquired a property, plant, and equipment through governmental grant. Explain the different ways which Penzema Corporation can apply in valuing such assets
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Penzema Corporation acquired a property, plant, and equipment through governmental grant. Explain the different ways which Penzema Corporation can apply in valuing such assets
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- Which of the following criteria would suggest that a not-for-profit capitalize its works of art, historical treasures, or similar assets?a. They are held for public inspection, education, or research in furtherance of public service rather than financial gain.b. They are protected, kept unencumbered, cared for, and preserved.c. They are subject to be used in the acquisition of other items for the collection.d. They are held primarily to be resold for financial gain.In which of the following circumstances would the property be deemed to have been disposed of? a. Property sold to a third party. b. Property gifted to another person or charity. c. Property expropriated by a government agency. d. Property redeemed by the issuer, such as bonds or shares.Write the definition, recognition, measurement and derecognition if any provided for the following: Intangible assets Impairment of assets Investment property Agriculture Borrowing cost Government grant
- Write the definition, recognition, measurement and derecognition for the following: Intangible assets Impairment of assets Investment property Agriculture Borrowing cost Government grantWhich 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…Which of the following expenditures resulting from a trust’s ownership of commercial real estate should be allocated to the trust’s principal? Building management fees. Insurance premiums Sidewalk assessments Depreciation
- Which of the following assets held by an enterprise would not qualify as investment in property as defined by PAS 40, Investment property? Land for sale in the ordinary course of business Land held for capital appreciation Land held for undetermined future use Building held to earn rentals Which of the following is included in the definition by PAS 20 of government grants?I. Transfer of resources to an entity in return for past or future compliance with certain conditions.II. Transactions with the government that cannot be distinguished from the normal trading transactions of the entity. II only I only Both I and II Neither I and II Which of the following would result in a Dr to AR? Sale of goods under " special order" "Special order is yet to be completed" Sale of goods classified as Trade Sale of goods under "Consignment" Sale with a right of repurchase2. If a corporation purchases land and building and subsequently tears down the building and uses the property as a parking lot, the proper accounting treatment of the cost of the building would depend on A) the intention of management for the property when the building was acquired. B) the significance of the cost allocated to the building in relation to the combined cost of the land and building. C) the length of time for which the building was held prior to its demolition. D) the contemplated future use of the parking lot.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?
- Which of the following is least likely capitalized as cost of land? Grading, filling, draining clearing and similar site development activities Survey Landscaping and similar improvements that have limited useful lives. Special assessment Subsequent to initial recognition, an entity shall use this model to account for its items of property, plant and equipment. cost model revaluation model fair value model Cost model or revaluation model as an accounting policy choice It is the systematic allocation of the depreciable amount of an asset over its estimated useful life. Depreciation Impairment Revaluation all of theseA 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 IncomeWhich of the following statement is true regarding the net approach of presentinggovernment grants?A. Government grant related to income has a deferred income from governmentgrant account.B. Government grant related to asset has a deferred income from government grantaccount.C. For grants related to asset, depreciation expense is higher as compared togross approach (unearned income from government grant approach).D. Government grant related to asset has to recognize an income from governmentgrant. From the below statements, which of them is a false statement regarding FSRSC?A. The chairman should be a senior practitioner of any scope of the accountancyprofession.B. FSRSC members serve without compensation for a term of three years, which canbe renewed for another three years.C. Not all members of FSRSC should be CPAs.D. FSRSC is the current standard setting-body in the Philippines. Its currentpronouncements are PASs. Which of the following statements is correct concerning the…