What are the general rules for how gains or losses onretirement of plant assets should be reported in income?

Q: When an item of property, plant, and equipment is disposed of, how is gain or loss on disposal…

A: When an item of property, plant and equipment is disposed of, then gain or loss is determined by…

Q: What amount of net gain on biological asset should be reported in the current year?

A: Assets can be either fixed or the non-current asset which depends upon the duration and life of the…

Q: What are the Gain Taxes on Asset Disposals?

A: When a asset is disposed, if the value realised on such disposal is more than the carrying amount of…

Q: What does it mean if an exchange of plant assets has commercial substance? Are gains and losses…

A: When there is an expectation that the future cash flow of a business will change due to a…

Q: How was the depreciation for fix assets calculated?

A: Deprecaition Expenses There are different method which are used to calculate the deprecation of the…

Q: What is the calculation for return on assets (ROA)? Explain what ROA measures?

A: ROA is the abbreviation used for Return on Assets. It a common accounting term and this is usually…

Q: Understand accounting issues related to acquiring and valuing plant assets.

A: Following are the accounting issues that are related to acquiring and valuing plant assets: a)  Cash…

Q: Which assets are included in the definition of current assets?

A: Current asset refers to the asset which can be easily converted to cash with a year. Current assets…

Q: How is property, plant, and equipment measured on the balance sheet under IFRS? How does this differ…

A: Generally Accepted Accounting Principles: The principles which are followed by the management to…

Q: Compare the financial reporting of the following classifications of intangible assets:purchased,…

A: Intangible assets are those assets which cannot be seen or touched. For example- Goodwill,…

Q: What are plant assets?

A: Solution:- Plant assets means as follows under:-

Q: Explain how losses on intangible assets that are impaired should be recorded in income.

A: When the carrying amount of the asset is less than the recoverable Amount it should be provided for…

Q: What financial statements are property, plant, and equipment reported on, and how?

A: Property, plant, and equipment are non-current assets which are reported on the balance sheet of the…

Q: Accounting for plant assets involves cost determination, depreciation, additional expenditures, and…

A: International Financial Reporting Standards (IFRS) They are commonly known as IFRS. It is a set of…

Q: What characteristics of a plant asset make it different from other assets?

A: Assets means anything which will enable a business enterprise to get cash or benefit in…

Q: Describe the depreciation procedures used in income taxation

A: The question deals with the depreciation procedures used in income taxation.

Q: What is the relationship between Income Measurement and Asset Valua

A: Profit or loss calculation is a simplified method of calculating income. An accountant defines…

Q: On a company's balance statement, why are fixed assets depreciated?

A: Fixed asset:  It can be defined as a tangible asset that is used by the business in its production…

Q: Why are property, plant and equipment capitalized as an asset and not expensed

A: Property, Plant and Equipment are tangible assets of the business which provides benefit to the…

Q: How does separating current assets from property, plant,and equipment in the balance sheet help…

A: Current assets: The assets which could be converted into cash within one year like accounts…

Q: What is the relationship of the asset turnover to the return on assets?

A:

Q: Explain the difference between tangible and intangible long-lived, revenue-producing assets.

A: Tangible assets are those assets which appear in the physical form and it is measurable. Assets like…

Q: What is the total loss on realization of assets?

A: Loss that is recognized when the assets are sold for a price is lower than the original purchase…

Q: What is the relationship between depreciation and net income?

A: Depreciation is the part of cost of a asset which is charged to income statement yearly as a expense…

Q: Asset-Based approach in valuation

A: Assets are the future economic benefit of the company that is sacrificed in paying off the debt and…

Q: Identify the basic “accountable events” in the life of adepreciable plant asset. Which of these…

A: Plant assets: Plant assets are the long term fixed assets that are used in the manufacturing and the…

Q: Which of the following should be disclosed in the Summary ofSignificant Accounting Policies?a. rent…

A: The external users of the financial statement required to know about the accounting methods,…

Q: How do the accounting treatment of capital expenditures differ from thetreatment of manufacturing…

A: Capital expenditures are those expenditures which will provide benefit to the business in future…

Q: What is the return on total assets given the figures attached?

A: Return on total assets is the comparison of operational income with that of the total assets. It…

Q: How is the straight-line depreciation calculated?

A: Definition: Straight-line depreciation method: The depreciation method which assumes that the…

Q: Compare the financial reporting of investment property with that of property, plant, andequipment

A: As per IFRS, investment property is the property owned only with the motive of earning capital…

Q: Revenues, gains, and investments by owners are allincreases in net assets. What are the distinctions…

A: All revenues, gains, and investments by owners increases the net assets of the business.

Q: Financial reporting purposes, long-lived, revenue-producing assets typically are classified in two…

A: Long lived assets:   Long lived assets are assets that can be held for a longer period of time and…

Q: Why is depreciation on the income statement different from the depreciation on the balance sheet?

A: Depreciation is the reduction in the value of asset during a period of time due to wear and tear.…

Q: lationship between Income Measurement and Asset Valuation

A: Profit or loss calculation is a simplified form of income measurement. Income is defined by an…

Q: ide a

A: As per the IAS 36 Impairment of asset we need to identify the asset that may be impaired and for…

Q: 1) What are the accounting models accepted under IFRS for the measurement of property, plant &…

A:

Q: How is gain or loss determined when disposing of plant assets? What situation constitutes a gain?…

A: Disposal of plant assets, may result in gain or loss.

Q: Identify the main difference between (a) plant assets and current assets, (b) plant assets and…

A: Given: The difference between the following.

Q: Explain the accounting issues related to acquiring and valuing plant assets.

A: Following are the accounting issues that are related to acquiring and valuing plant assets: a)  Cash…

Q: Describe the method of Accounting for Depreciation and Income Taxes?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: what is Land classified as on the Income statement in the Revenue section?

A: Land is defined as the ground occupied by a business’ operations. This can include a company’s…

Q: If an asset is sold at a gain, why is the gain deducted from net income when computing the netcash…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Describe income tax methods of depreciation.

A: The concept of depreciation applies to both tax and accounting practices. For taxation purposes,…

Q: How can we determine the unit profit of operating an asset?

A: Operating income: Operating income measures the organization’s profitability (includes all incomes…

Q: Is intangible assets is classified as current assets?

A: Generally, the liquidity of the assets plays a significant role in determining whether they are…