Question 1

Referring to examples from the current accounting standards,discuss the influence of conservatism (prudence)on the recognition of assets.

Accepted Answer

Conservatism, also known as prudence, is

Question 2

Explain and discuss how an asset can provide future economic benefits.Refer to both profit seeking and not-for-profit organisations.

Accepted Answer

An asset can provide future economic ben

Question 3

The recognition rules for assets contained in the Framework are extensions of the subsidiary objectives (qualitative characteristics)of relevance and reliability of accounting information.

Accepted Answer

A) True 
 B)False

Question 4

The extent and timing of recognition of assets are important because:

Accepted Answer

A) They can affect the decision making for users of financial statements 
B) They can affect the calculation of ratios which are important inputs for debt covenants 
C) They can affect management compensation 
D) All of the above 
A) They can affect the decision making for users of financial statements 
B) They can affect the calculation of ratios which are important inputs for debt covenants 
C) They can affect management compensation 
D) All of the above

Question 5

Which of these is not an argument in favour of restricting the recognition of internally generated goodwill?

Accepted Answer

A) Good will is not separable from other assets 
B) There are difficulties in identifying whether and when goodwill will generate future economic benefits 
C) Goodwill cannot be sold 
D) All of the above 
A) Good will is not separable from other assets 
B) There are difficulties in identifying whether and when goodwill will generate future economic benefits 
C) Goodwill cannot be sold 
D) All of the above

Question 6

Arguments in favour of including 'exchangeability' as an essential criterion for the identification of an asset under the IASB (AASB)Framework include which of the following?

Accepted Answer

A) That assets should be separable from the entity and have a separate disposal value 
B) That exchange is only one way to obtain the benefit of an asset 
C) That economic value depends upon scarcity and utility,but not on exchangeability 
D) None of the above are arguments in favour of including exchangeability as an essential characteristic of an asset. 
A) That assets should be separable from the entity and have a separate disposal value 
B) That exchange is only one way to obtain the benefit of an asset 
C) That economic value depends upon scarcity and utility,but not on exchangeability 
D) None of the above are arguments in favour of including exchangeability as an essential characteristic of an asset.

Question 7

A valuation approach used by current IASB standards is:
i.Written down historical cost
ii.Fair values based on exit values
iii.Fair values based on value in use

Accepted Answer

A) i,ii 
B) i,iii 
C) ii,iii 
D) i,ii,iii 
A) i,ii 
B) i,iii 
C) ii,iii 
D) i,ii,iii

Question 8

IAS 16 and IAS 40 permit,but do not require,the use of a current value measurement model.

Accepted Answer

A) True 
 B)False

Question 9

Exchangeability is a characteristic that supports the existence of an asset,however,it is not an essential characteristic.

Accepted Answer

A) True 
 B)False

Question 10

The FASB and the IASB intend to address the issue of measurement of assets in Phase C of the conceptual framework project.

Accepted Answer

A) True 
 B)False

Referring to examples from the current accounting standards,discuss the influence of conservatism (prudence)on the recognition of assets.

Explain and discuss how an asset can provide future economic benefits.Refer to both profit seeking and not-for-profit organisations.

The recognition rules for assets contained in the Framework are extensions of the subsidiary objectives (qualitative characteristics)of relevance and reliability of accounting information.

The extent and timing of recognition of assets are important because:

Which of these is not an argument in favour of restricting the recognition of internally generated goodwill?

Arguments in favour of including 'exchangeability' as an essential criterion for the identification of an asset under the IASB (AASB)Framework include which of the following?

A valuation approach used by current IASB standards is: i.Written down historical cost ii.Fair values based on exit values iii.Fair values based on value in use

IAS 16 and IAS 40 permit,but do not require,the use of a current value measurement model.

Exchangeability is a characteristic that supports the existence of an asset,however,it is not an essential characteristic.

The FASB and the IASB intend to address the issue of measurement of assets in Phase C of the conceptual framework project.

Introduction

Accounting Theory Construction

Role of Theory in Accounting Regulation

Theory Underpinning Accounting Standards

Measurement

Accounting Measurement Systems

Liabilities and Owners Equity

Revenue

Expenses

Positive Theory of Accounting Policy and Disclosure

Capital Market Research

Behavioural Research

Emerging Issues in Accounting and Auditing

Filters

Exam 7: Assets

Referring to examples from the current accounting standards,discuss the influence of conservatism (prudence)on the recognition of assets.

Explain and discuss how an asset can provide future economic benefits.Refer to both profit seeking and not-for-profit organisations.

The recognition rules for assets contained in the Framework are extensions of the subsidiary objectives (qualitative characteristics)of relevance and reliability of accounting information.

The extent and timing of recognition of assets are important because:

Which of these is not an argument in favour of restricting the recognition of internally generated goodwill?

Arguments in favour of including 'exchangeability' as an essential criterion for the identification of an asset under the IASB (AASB)Framework include which of the following?

A valuation approach used by current IASB standards is: i.Written down historical cost ii.Fair values based on exit values iii.Fair values based on value in use

IAS 16 and IAS 40 permit,but do not require,the use of a current value measurement model.

Exchangeability is a characteristic that supports the existence of an asset,however,it is not an essential characteristic.

The FASB and the IASB intend to address the issue of measurement of assets in Phase C of the conceptual framework project.

Introduction

Accounting Theory Construction

Role of Theory in Accounting Regulation

Theory Underpinning Accounting Standards

Measurement

Accounting Measurement Systems

Liabilities and Owners Equity

Revenue

Expenses

Positive Theory of Accounting Policy and Disclosure

Capital Market Research

Behavioural Research

Emerging Issues in Accounting and Auditing

Filters