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PAS 16 Test Bank
PAS 16 Test Bank
1. PAS 16 applies to
a. Property, plant and equipment classified as held
for sale in accordance with PFRS 5
b. Biological assets related to agricultural activity
c. Mineral rights and mineral reserves such as oil,
natural gas and similar non-regenerative
resources.
d. Property, plant and equipment used to develop or
maintain biological assets and mineral rights and
mineral resources
What is depreciation?
a. The systematic allocation of the depreciable
amount of an asset over its useful life.
b. The cost of an asset, or other amount substituted
for cost, less its residual value.
c. The removal of a previously recognized asset from
an entity’s statement of financial position.
d. Price that would be received to sell an asset in an
orderly transaction between market participants at
the measurement date.
2. Depreciation of an asset begins
a. When it is available for use.
b. When it is actually used.
c. When it is retired from active use.
d. When it is derecognized.
14. The residual value, the useful life of an asset and the
depreciation method applied to an asset shall be
reviewed
a. At least at each financial year-end.
b. At least every two years.
c. At least every three years.
d. Only if there is an indication they may have
changed since the most recent annual reporting
date.