What is the amount to be capitalized when repairs or improvements that significantly increase the value of an asset have been incurred but the fair value of the property is not determinable?  a. The actual amount incurred for repairs or improvements b. The excess of the cost of the asset over the actual amount of repairs or improvements c. The excess of the actual repairs or improvements over the cost of the asset. d. No amount should be capitalized

Q: How will we recognise any fair value gain arising from a change in fair value of an investment…

A: Investment Property:   An investment property is a property in the form of land or building that are…

Q: Which of the following amounts would be used in calculating a lessee's right of use asset (ROU)? ) O…

A: A lease is a contractual agreement between two parties, the lessor (owner) and the lessee (user),…

Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…

A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…

Q: Under IFRS, a loss from the destruction of property in a fi re would most likely be classifi ed as:…

A: When a gain or loss occurs due to a infrequent event and which are unusual in nature, then such gain…

Q: An asset is considered impaired if: O the fair market value of the asset exceeds the carrying value…

A: In accounting, an asset is considered impaired when its carrying amount (book value) is greater than…

Q: Can a member who contributed an asset demand for its return, transfer or conveyance upon dissolution…

A:

Q: Why might the actual holding period for a property be different from the holding period that was…

A: The consideration while anticipating holding period: 1.The rental from the property. 2.The rate at…

Q: If the “fair value less cost to sell” of a noncurrent asset held for sale is lower than its carrying…

A: Impairment of an asset is required when there are indication that an impairment loss may have…

Q: If a company uses the fair value model to value investment property, changes in the fairvalue of the…

A: Under the fair value model, remeasuring of investment property is made at the end of each reporting…

Q: capitalisation

A: As per IAS -16 and expenditure incurred need to be capitalized if the below two conditions are…

Q: Which among the sentences below is incorrect? A. An entity shall measure a current asset or…

A: Fair value A fair value means the actual price of an asset received if it is sold in the market. In…

Q: Describe to Stan what it means to capitalize an expenditure. What is the general rulefor determining…

A:

Q: Which one of the following tangible fixed assets would not normally be ?depreciated Option 1…

A: Tangible fixed assets are those fixed assets which have physical appearance.

Q: Which of the following assets do not qualify for capitalization of interest costs incurred during…

A: Interest cost means the amount of outlay incurred to finance the non-current assets or the assets…

Q: Which of the following best describes goodwill impairment in accounting?   A) Goodwill impairment…

A: At each reporting date, an entity is required to assess whether there is any indication that an…

Q: Are litigation costs to defend an intangible asset capitalized or expensed? Explain your answer.

A: Litigation Costs should be capitalised and amortised over the remaining useful life of the related…

Q: When an impairment loss occurs, the carrying amount of the asset should be reduced to its   a) ©…

A: Impairment: It implies to an increase in the fixed asset's carrying value in relation to the price…

Q: TRUE OR FALSE? Once decided by management as an asset held for sale, management can never change…

A: An entity should classify an asset held for sale category when the carrying amount of an asset will…

Q: 8. An item of property, plant and equipment should recognised as an asset if and only if: A. it is…

A: IAS 16 “Property, Plant, and Equipment”, deals with the determination of the cost of fixed assets to…

Q: When market value of an asset is higher than book value, depreciation is not charged. A) True B)…

A: Meaning of depression. Depreciation is a reduction in the value of asset due to wear and tear,…

Q: Which of the following is not a part of the impairment test of equipment under IFRS? Group of answer…

A: The objective of the question is to identify which of the given options is not a part of the…

Q: Which of the following is not a part of the impairment test of equipment under IFRS? Group of answer…

A: The objective of the question is to identify which of the given options is not a part of the…

Q: TRUE OR FALSE If an intangible asset is successfully defended from a legal challenge, the incurred…

A: The term "intangible assets" refers to assets without a physical form. Businesses that have made…

Q: Which of the following best describes goodwill impairment in accounting? A) Goodwill impairment…

A: Eliminating the incorrect options:A) Goodwill impairment occurs when the fair value of a reporting…

Q: Inventor's life is not considered in determining the useful life of an intangible asset.   TRUE OR…

A: Intangible assets are those assets which does not have any physical existence.  That means…

Q: Neither the date the property is acquired nor the date it is disposed of count in determining the…

A: Holding period starts from the date after the acquired date and ends on sale date of asset

Q: angible assets have all of the following characteristics, except: O they provide benefits to current…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: an impairment of a non current asset held for sale:

A: Impairment means generally calculated as Carrying amount minus recoverable value. Any impairment…

Q: An entity that acquires an intangible asset may use the revaluation model for subsequent measurement…

A: Lets start with basic understanding. Intangible asset is considered under IAS 38 " Intangible…

Q: Which of the following statements is TRUE regarding capitalization of interest? O Interest cost…

A: Capitalization of interest is an accounting method in which the interest expenses incurred during a…

Q: Why is property and equipment not reported on the balance sheet at fair value?

A: A financial statement called a balance sheet lists an organization's assets, liabilities, and…

Q: 17. Which of the following amounts shall not be recognized in profit or loss with respect to…

A: Rental Income from the Investment property shall be recognized in the profit and loss statements as…

Q: A company could change their intention of use for an intangible asset resulting in the asset no…

A: Yes, a company can change its intention of use for an intangible assets, which may impact how it is…

Q: ssets intended to be held and used for ircumstances except luctive purposes may suffer from…

A: Impaiment of Asset seeks  to ensure that an entity's assets are not carried at more than their…

Q: Under IFRS, an intangible asset is considered to be impaired if it carrying value is greater than…

A: According to IFRS 13 and Indian Accounting Standard (IAS) 36, an intangible asset is said to be…

Q: Nonresidential real and residential rental property depreciated using MACRS are not subject to…

A: Nonresidential real and residential rental property depreciated using MACRS are not subject to…

Q: PAS 16 defines depreciation as “the decrease in the value of an asset.”

A: With the passage of time, the value of assets goes on decreasing due to various reasons such as…

Q: A loss on impairment on a limited life intangible asset is the difference between the asset’s…

A: The objective of the question is to identify the correct method for calculating a loss on impairment…

Q: The acquirer shall recognize separately the acquiree's identifiable assets, liabilities and…

A: As per the provision in IAS37, contingent liability is a liability which depends on happening of…

Q: Insurance value differs from market value in that? a) the value is only attributed to the…

A: Market value It is a price at which the asset will fetch in the market/ investment value community…

Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.