Which of the following statements is not applicable to contract acquisition costs under ASC Topic 606 guidance for revenue recognition? Incremental costs of acquiring a contract must be capitalized and amortized over the life of the contract. Costs that would be incurred regardless of whether a contract is obtained are not capitalized. The capitalization requirement is subject to a practical expedient. Costs must be capitalized even if the amortization period is one year or less.

Q: If a contract modification adds distinct goods or services and the contract price increases by an…

A: Any modification in the price or scope or both with regard to a contract by the parties to the…

Q: Based on the requirements and guidance of IFRS 15, one of the following is not considered part of…

A: Under the contract costing, there is an agreement made between two parties in respect of performing…

Q: Not yet Statement 1-IFRS 16 paragraph 100 provides that the seller-lessee shall measure the right of…

A: Ifrs 16 includes the requirements of sale and lease back transactions under paragraph 98 to 100.…

Q: An entity shall suspend capitalization of borrowing costs during extended periods in which it…

A: Borrowing costs are capitalised only during the capitalization period. When all of the following…

Q: f the Construction in Progress account is greater than the Contract Billings, the excess is treated…

A: Construction in progress means the contracts' work which still going on and is yet to be completed.

Q: Choose the correct. When negotiating a business acquisition, buyers sometimes agree to pay extra…

A: The correct answer is Option (c).

Q: According to PAS 23, borrowing costs are capitalized when *       They relate directly to the…

A: Answer-    Correct Option is Option A - They relate directly to the acquisition, construction, or…

Q: Under the corridor​ approach, a company only amortizes the net accumulated unamortized actuarial…

A: Introduction Corridor approach is a techniques used to reduce the amount of gain or losses, it…

Q: Which of the following should be included by the lessee in determining the amount of the…

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: FASB ASC 805, “Business Combinations,” provides principles for allocating the fair value of an…

A: Financial Accounting Standards Board (FASB): FASB is an independent 7 member board, of accounting…

Q: Which of the following is not included in the evaluation questions of IFRS 16 in identifying a lease…

A: These are all the questions tDoeso be evaluated whole entering into a lease contract:: the lessee…

Q: Choose the correct. FASB ASC 805, “Business Combinations,” provides principles for allocating the…

A: Financial Accounting Standards Board (FASB):  FASB is an independent 7 member board, of accounting…

Q: xplicitly identified in the contract, it means that: a. the identified asset is never mentioned in…

A: When the asset is implicitly identified, this means asset is implied but is not directly expressed.…

Q: One of the following statements is false:      a. If the underlying asset will not revert to the…

A: A lease is a contract which provides the right to use an asset for consideration for a specified…

Q: Which statements are correct concerning measurement of cost of property, plant and equipment?

A: Concerning measurement of cost of property, plant and equipment Property, plant, and equipment are…

Q: 12. Which of the following statements about the requirements of IFRS 5 is incorrect? a. At the end…

A: As per IFRS 5 THE ASSETS HELD FOR sale are initially recorded at the carrying value of the assets…

Q: Explain how an entity would initially and subsequently measure its right-of-use asset and lease…

A: Lease Liability: Initial measurement: The Lease Liability is initially measured at the present…

Q: If the fair value of the consideration for the sale of an asset does not equal the fair value of the…

A: If the fair value of the consideration for the sale of an asset does not equal the fair value of the…

Q: Choose the correct. When should a consolidated entity recognize a goodwill impairment loss?a. If…

A: Goodwill is determined as an excess of the cost of a company acquired over the fair market value of…

Q: All of the following are true regarding the revaluation model allowed under GAAP except;

A: The revaluation model gives a business the option of carrying a fixed asset at its revalued amount.…

Q: Which of the following are exceptions for PFRS 9 application? CHOICES Contracts to buy or sell…

A: The  following are exceptions for PFRS 9 application?:: Contracts that were entered into and…

Q: Which of the following is not an example of an item that would be a contingent asset?   a A…

A: Contingent asset is an economic benefit depends on the future happening of an event which is not in…

Q: The cost-plus approach:   a. refers to contracts that are modified from their original terms…

A: Cost plus contract means a contract in which buyer agrees to pay the  contractor all the Cost plus a…

Q: Depreciation is based on the fair value of assets. An impairment loss occurs if the carrying value…

A: GIVEN     Depreciation is based on the fair value of assets. An impairment loss occurs if…

Q: When a lessor actually sells an asset that it has been leasing, the difference between the sales…

A: Lease is an agreement in which one person gives to another person his asset to use for a specific…

Q: When negotiating a business acquisition, buyers sometimes agree to pay extra amounts to sellers in…

A: Definition:   Contingent liability: This is an uncertain obligation that might be incurred on a…

Q: Under U.S. GAAP, litigation costs to successfully defend an intangible right are capitalized and…

A: IFRS:  IFRS means international financial reporting standards. It is implemented to report the…

Q: Under IFRS 15, when shall the incremental cost of obtaining a contract with a customer be recognized…

A: IFRS (International financial reporting standards) refer to a set of accounting guidelines and rules…

Q: When it is probable that total contract costs will exceed total contract revenue, how shall the…

A: IAS 11 prescribes the contractor’s accounting treatment of revenue and costs associated with…

Q: When it is probable that total contract costs will exceed total contract revenue, how shall it be…

A: Contract account is prepared when the work to be done take substantial time to make (generally more…

Q: When the required balance of the loss allowance decreases, a. the entity recognizes gain. b. the…

A: As per IFRS 9, a loss Allowance is made for the expected losses on any asset.  It reduces the…

Q: a. Over what period of time should the cost of a patent acquired by purchase be amortized?b. In…

A: Intangible Assets: These are the long-term assets having no physical existence. However, the…

Q: 24. One of the following statements is false: * a. If the underlying asset will not revert to the…

A: In accordance with IFRS 16, a lease is contract that provides the right to use an asset for a…

Q: (Based on Appendix 12B) Reporting an investment at its fair value requires adjusting its carrying…

A: Available for sale securities: These are the securities which are not intended to be sold in the…

Q: Which of the following statements is true?   Question 2 options: a The capitalizable costs of…

A: At the time of acquisition of intangible assets, all incidental costs are capitalised that are…

Q: Any of the following criteria is considered satisfaction by an entity of performance obligation over…

A: As per IFRS 15, An entity transfers control of a good or service over time and, therefore, satisfies…

Q: A company can opt not to take the Bonus Depreciation by completing Form 4562, Depreciation and…

A: Depreciation is an expense which shows the decrease in asset value over its life due to use, wear…

Q: The cost of a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange…

A: Fair Value:Fair value is the price settled and agreed by both buyer and seller, each of them acting…

Q: If the outcome of a long-term contract can be measured reliably, the preferred accounting method…

A: The percentage of completion method is an accounting technique in which long-term deed income and…

Q: During the measurement period, which of the following may affect the amount of goodwill from…

A: Measurement period is the period after the acquisition date in which acquirer can adjust the…

Q: In which of the following instances is the capitalization of borrowing costs suspended? a. during…

A: All the borrowing cost that is directly associated with the acquisition or construction of  a…

Q: When percentage-of-completion accounting is not appropriate, U.S. GAAP requires the use of the…

A:

Q: How should an entity account for a short-term or low-value lease under PFRS 16? Group of answer…

A: Lease is a contract between two parties lessor and lessee. Lessor provides it's asset for use to…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.