OO O 8 O Which of the following is not 1/1 a condition that must be satisfied before interest capitalization can begin ona qualifying asset? Interest is being incurred. The interest rate is equalto or greater than the cost Activities necessary to get the asset ready for the intended use are in progress. Expenditures for the asset have been made. None of these Q = aOO OO OO © Which is not be considereda 1/1 qualifying asset? An expensive private jetthat >< can be purchased from a local manufacturer. A ship that normally takes one to two years to complete. A power generation plant that normally takes two years to construct. None of these Atoll bridge that usually takes more than a year to build Q = a© O00 O A government grant that M1 becomes receivable as compensation for expenses or losses already incurred should be recognized as income: Over a maximum of 5 years using straight line. Over a maximum of 10 years using straight line. When received. None of these Of the period in which it x becomes receivable. Q = aO00 0 ® Government grant in VA recognition of specific costs is recognized as income Over the same period asthe relevant expense. Over a maximum of 5 years using straight line. None of these Immediately. Over a maximum of 5 years using sum of digits. Q Ul CO Bam OO 0 Government grant shallbe 1/1 recognized when there is reasonable assurance that: The entity will comply with the conditions of the grant. None of these The grant will be received. The entity will comply with the *% conditions of the grant and the grant will be received. The grant must have been received. Q Ul CQO O Bee Oo O If the present value of anote 1/1 issued in exchange for plant asset is less than the face amount, the difference is Included in the cost of the asset Included in interest expense in the year of issuance Amortized as interest expense over the life of the note Amortized as interest expense over the life of the asset None of these Q Ul Co“ Thecostof property, plant 1/1 and equipment comprises all of the following, except None of these x Import duties and nonrefundable purchase taxes Purchase price Any cost directly attributable in bringing the asset to the location and condition for the intended use O 00 Ff Initial estimate of the cost of O dismantling the asset for which the entity has no present obligation. Q Ul Dwv O 0 ORO Anonmonetary exchange is 1/1 recognized at fair value of the asset exchanged unless The assets are dissimilar Fair value is not determinable The assets are similar in nature None of these Exchange has commercial substance Q Ul C/ Costs directly attributable to 1/1 the asset include all, except: © None of these O Cost of site preparation © Initial operating loss x O Initial delivery and handling cost a Oo Installation and assembly cost < Q = ass O OO ®© The cost of property, plant 1/1 and equipment comprises all of the following, except None of these x Import duties and nonrefundable purchase taxes Purchase price Any cost directly attributable in bringing the asset to the location and condition for the intended use Initial estimate of the cost of dismantling the asset for which the entity has no present obligation. Q UI oOOo O 98 QO Which is not acharacteristic 1/1 of property, plant and equipment? The property, plant and equipment are used in business. The property, plant and equipment are tangible assets. None of these The property, plant and equipment are expected to be used over a period of more than one year. The property, plant and x equipment are subject to depreciation. Q UI oOQO OB O OO Subsequent to initial 1 recognition, the investment property shall be measured using: Fair value model or revaluation model Fair value through profit or loss model Cost model or fair value me model Cost model or revaluation model None of these Q = 0< OO 0 @0 An investment property is 1/1 derecognized when It is disposed to a third party. In all of these cases. x No future benefits are expected from the disposal. It is permanently withdrawn from use. None of these Q UI Cvw Oo OO © O Directly attributable VA expenditures related to investment property include: Start up costs. Professional fees for legal x services, property transfer taxes and other transaction cost. None of these Initial operating loss incurred before the investment property achieves the planned level of occupancy. Abnormal amount of wasted material, labor and other resources incurred in constructing or developing the property.Y_ Which statement is true if the 1/1 property is partly investment and partly owner-occupied? |. If the investment and owner-occupied portions couldn't be sold or leased out separately, the property i8investment property if only an insignificant portion is held for manufacturing or administrative purposes. II. If the investment and owner- occupied portions could be sold or leased out separately, the portions shall be accounted for separately as investment property and owner-occupied property © Bothtand 1 x oO llonly (® None of these © | only © Neither | nor IlS OO 0 0 © Investment property includes 1/1 all of the following, except Property held forsale inthe ordinary course of business. Land held for currently undetermined use Building owned by the reporting entity leased out under an operating lease. None of these Land held for long-term capital appreciation Q UI CO 0 00 ®© When the interest payment — 1/1 dates of a bond are May 1 and November 1, and a bond is purchased on June 1, the cash paid by the investor would be Increased by accrued interest > from May 1 to June1. None of these Decreased by accrued interest from May 1 to June 1. Decreased by accrued interest from June 1 to November 1. Increased by accrued interest from June 1 to November 1. Q = aX_ The effective interest sf rate on bond is higher than the stated rate when bond sells O None of these © Atface amount x O Above face amount © At maturity value ZS Below face amount No correct answers% TBARS hod of amortizing premium provides for None of these Decreasing amortization and decreasing interest income Increasing amortization and increasing interest income of exes amortization and increasing interest income CO Increasing amortization and decreasing interest income No correct answersO @ ) O O [eoMpute the priceto -- 1 pay for a bond, what present Value concept is used? The future value of 1 The present value of 1 and present value of an ordinary annuity of 1 The present value of 1 x None of these The present value of an ordinary annuity of 1 No correct answers