Question 1

AASB 136 defines value in use as the:

Accepted Answer

A)  amount obtainable from the disposal of an asset, excluding any selling costs. 
B)  initial cost of an asset less any expected disposal costs. 
C)  incremental costs directly attributable to the disposal of an asset or cash-generating unit, excluding finance costs and income tax expense. 
D)  present value of the future cash flows expected to be derived from an asset or cash-generating unit. 
A)  amount obtainable from the disposal of an asset, excluding any selling costs. 
B)  initial cost of an asset less any expected disposal costs. 
C)  incremental costs directly attributable to the disposal of an asset or cash-generating unit, excluding finance costs and income tax expense. 
D)  present value of the future cash flows expected to be derived from an asset or cash-generating unit.

Question 2

Parkes Limited recognised an impairment loss of $20 000 against a cash-generating unit containing the following assets: buildings $50 000; roads $110 000; equipment $40 000. The net carrying amount of the roads after allocation of the impairment loss is:

Accepted Answer

A)  $ 90 000 
B)  $ 45 000 
C)  $ 99 000 
D)  $ 36 000 
A)  $ 90 000 
B)  $ 45 000 
C)  $ 99 000 
D)  $ 36 000

Question 3

AASB 136 Impairment of Assets requires which of the following disclosures for each class of assets: I The line item(s) of the statement of profit or loss and other comprehensive income in which impairment losses are included.
II The amount of reversals of impairment losses during the period.
III The amount of impairment losses recognised directly in other comprehensive income.
IV The beginning and ending balances of any accumulated impairment account.

Accepted Answer

A)  I, II and III only. 
B)  I, II, III and IV. 
C)  II and IV only. 
D)  IV only. 
A)  I, II and III only. 
B)  I, II, III and IV. 
C)  II and IV only. 
D)  IV only.

AASB 136 defines value in use as the:

Parkes Limited recognised an impairment loss of $20 000 against a cash-generating unit containing the following assets: buildings $50 000; roads $110 000; equipment $40 000. The net carrying amount of the roads after allocation of the impairment loss is:

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Fair Value Measurement

Inventories

Property, Plant and Equipment

Intangible Assets

Provisions, Contingent Liabilities and Contingent Assets

Employee Benefits

Leases

Financial Instruments

Income Taxes

Share Capital and Reserves

Share Based Payment

Revenue

Presentation of Financial Statements

Statement of Cash Flows

Accounting Policies and Other Disclosures

Earnings Per Share

Operating Segments

Related Party Disclosures

Sustainability and Corporate Social Responsibility Recording

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Foreign Currency Financial Statements

Business Combinations

Consolidation: Controlled Entities

Consolidation: Wholly Owned Entities

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Mineral Resources

Agriculture

Filters

Exam 7: Impairment of Assets

AASB 136 defines value in use as the:

Parkes Limited recognised an impairment loss of $20 000 against a cash-generating unit containing the following assets: buildings $50 000; roads $110 000; equipment $40 000. The net carrying amount of the roads after allocation of the impairment loss is:

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Fair Value Measurement

Inventories

Property, Plant and Equipment

Intangible Assets

Provisions, Contingent Liabilities and Contingent Assets

Employee Benefits

Leases

Financial Instruments

Income Taxes

Share Capital and Reserves

Share Based Payment

Revenue

Presentation of Financial Statements

Statement of Cash Flows

Accounting Policies and Other Disclosures

Earnings Per Share

Operating Segments

Related Party Disclosures

Sustainability and Corporate Social Responsibility Recording

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Foreign Currency Financial Statements

Business Combinations

Consolidation: Controlled Entities

Consolidation: Wholly Owned Entities

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Mineral Resources

Agriculture

Filters