Which of the following statements relating to measurement of the value of an item appearing in the Financial Statements is TRUE? O 1. The value of property, plant and equipment (pp&e) always appears in the Balance Sheet at historical cost O 2. When a company is deemed to have significant influence over an investee company but not control, it should account for the investee using the consolidation method O 3. The amortised value of goodwill should appear in the Balance Sheet O 4. The notions of Fair Value, Realisable Value and Present Value are largely viewed as being the same
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- 1. From the data below, determine the goodwill/gain on acquisition? 2. From the data below, determine the total assets of Play Corporation after the acquisition? 3. From the data below, determine the total liabilities of Play Corporation after the acquisition?Q7 How are transaction costs associated with the acquisition of financial assets recognized in the financial statements of the acquiring entity? Select one: a. They are always capitalized to increase the value of the financial asset. b. The treatment depends on the classification of the financial asset at acquisition date. c. They are only capitalized if the amortized cost model is used. d. They are always charged in the profit or loss account in the year in which the transaction was made.Hw would you best define an intangible asset? A. Assets that dont impact the company's valuation B. Assets with physical traits, such as property or equipment C. Assets not recorded on the Balance Sheet, such as customer loyyalty or intellectual property D. Assets that were added to the company in the most recent annual report E. Assets that depreciate at an accelerated rate
- 1.) If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at: A. Cost B. The lower of “Cost” and “Fair value, less costs to sell’ C. The higher of “Cost” and “Fair value, less costs to sell’ D. Fair value, less costs to sell 2.) An adjustment, to the carrying amount of a non-current asset that ceases to be classified as ‘held for sale’, is recorded in: A. Income from continuing operations B. Equity C. Income from discontinued operations D. SecretQuestion 9 Phillips Corporation sold a fixed asset used in its operations for greater than its carrying amount. Phillips should report the transaction in the income statement using the: A. Gross concept, showing the proceeds as part of revenues and the carrying amount as part of expenses in the continuing operations section of the income statement. B. Net concept, showing the total amount as a component of other comprehensive income, net of taxes. C. Net concept, showing the total gain as part of discontinued operations, net of taxes. D. Net concept, showing the total gain as part of continuing operations , not net of taxes.Which of the following is (are) acceptable valuation(s) for reporting of assets on the balance sheet? 1. inventories at lower of cost or net realizable value. 2. accounts receivable at net realizable value. 3. plant and equipment at cost 4. investments at acquisition cost Select one: 1 and 4 1 and 3 1 and 2 2 and 4
- 1.compute the amount of goodwill acquired 2.Record the acquisition in a financial statements model. Arizona Corporation’s financial condition just prior to the acquisition is shown in the financial statements model 3.Record the acquisition in general journal format24. Depreciation Concepts Listed below are concepts and terminology related to depreciation. Required: Match each concept with the related terminology. 1. The period of time over which the company anticipates deriving benefit from the use of the asset 2. The cost of the asset minus its accumulated depreciation 3. The total amount of depreciation expense that has been recorded for an asset since the asset was acquired 4. The amount of cash or trade-in consideration that the company expects to receive when an asset is retired from service 5. A process of cost allocation, not an attempt to measure the fair value of an asset Terminology: depreciation accumulated depreciation book value estimated useful life residual valueS1: In an acquisition where the acquirer pays cash for the acquiree assets, the book value of the acquiree is to be used for valuation. S2: In acquisition of assets for assets, the ownership structure of the acquiree does notchange Both statements are Only S2 is Only S1 is Both statements are 2. If the value implied by the purchase price of an acquired company exceeds the fair values of identifiable net assets, the excess should be Allocatedgoodwill Allocated to reduce long-livedassets Allocated to reduce any previously recorded goodwill and classify any remainder as an ordinary Allocated to reduce current and long-livedassets
- Q1 Which of the following statement (s) is (are) true? (i) When no future economic benefits are no longer expected to flow from an intangible asset, such asset should be derecognized the financial statements of an organization. (ii) When an intangible asset is derecognized, the carrying amount should be written off as a loss in the profit or loss statement at the date of retirement of the asset. (iii) When an intangible asset is sold, the difference between the carrying amount and consideration received is recognized in the profit or loss statement at the date of the sale. (iv) Consideration to be received in the event of sale of an intangible asset should only be cash Select one: a. (ii) and (iv) only b. (i) and (ii) only c. (i) and (iv) only d. (i), (ii) and (iii) only1. IAS 36 applies to which of the following assets? (a) Inventories. (b) Financial assets. (c) Assets held for sale. (d) Property, plant, and equipment. 2. Value-in-use is (a) The market value. (b) The discounted present value of future cash flows arising from use of the asset and from its disposal. (c) The higher of an asset’s fair value less cost to sell and its market value. (d) The amount at which the asset is recognized in the balance sheet. 3. If the fair value less costs to sell cannot be determined (a) The asset is not impaired. (b) The recoverable amount is the value-in-use. (c) The net realizable value is used. (d) The carrying value of the asset remains the same. 4. If assets are to be disposed of (a) The recoverable amount is the fair value less costs to sell. (b) The recoverable amount is the value-in-use. (c) The asset is not impaired. (d) The recoverable amount is the carrying value. 5. Estimates of future cash flows normally would cover projections over a maximum…Statement 1: When an item of asset is transferred to and from the classification investment property, carried using the cost model, the measurement basis at the date of transfer is the original cost.Statement 2: Any gain or loss from the disposal of the investment property shall be determined as the difference between the net disposal proceeds and the carrying amount of the asset and shall be recognized in profit or lossStatement 3: If owner-occupied property is transferred to investment property that is to be carried at fair value, the difference between the carrying amount of the property and its fair value shall be included in profit or loss.Statement 4: If an entity determines that the fair value of an investment property is not reliably determinable on a continuing basis, the entity shall measure that investment property using the revaluation model. A. Only two of the statements are true. B. All statements are true. C. Only one of the statements is true. D. Only three…