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

In interest capitalization related to self constructed assets, all of the following must occur before the capitalization window begins except: A.Expenditures for the assets have been incurred   B.Depreciation of the asset being built has been recognized   C.Activities that are necessary to get the asset ready for its intended use are in progress   D.Interest has to be incurred

___________ and __________ are examples of a depreciable asset, while ____________ and ____________ are examples of non-depreciable assets that can be used to generate business or property income.

Once an asset has been determined to be impaired, the amount of impairment is measured as: The asset's cost minus the fair value The asset's future cash inflows minus the book value The asset's book value minus the fair value The asset's cost minus the book value

TRUE OR FALSE Amortization of intangibles is usually done over the asset’s legal life.

The main objective of IAS 36 Impairment of Assets is to prescribe the procedures that should ensure that an entity's assets are included in its statement of financial position at no more than their recoverable amounts. Where an asset is carried at an amount in excess of its recoverable amount, it is said to be impaired and IAS 36 requires an impairment loss to be recognized. Required: Define an impairment loss explaining the relevance of fair value less costs to sell and value in use and state how frequently assets should be tested for impairment. 2. Describe the possible incators of impairment. 3. Explain how an impairment loss is accounted for after it has been calculated.

From an economic point of view, which activity is regarded as an undertaking to prevent a loss in value, rather than an activity undertaken to add value to the property? maintenance O modernization O rehabilitation O remodeling

Which of the following is not a capital expenditure decision Select one: a. Improvement in fixed asset b. Purchase of goodwill c. None of the options d. Replacement in fixed asset e. R&D Expenditure

1) All interest paid on a construction loan should be capitalized as part of the cost of the constructed asset. A) True B) False