If a company wished to maintain the carrying amount in the financial statements of its non-current assets, which of the following would it be unlikely to do?
A: Enter into a sale and short-term leaseback
B: Account for asset-based government grants using the deferral method
C: Revalue its properties
D: Change the depreciation method for new asset acquisitions from 25% reducing balance to ten years straight line
A: Enter into a sale and short-term leaseback
B: Account for asset-based government grants using the deferral method
C: Revalue its properties
D: Change the depreciation method for new asset acquisitions from 25% reducing balance to ten years straight line
举一反三
- Which of the following would be treated under IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors as a change of accounting policy? A: A change in valuation of inventory from a weighted average to a FIFO basis B: A change of depreciation method from straight line to reducing balance C: Adoption of the revaluation model for non-current assets previously held at cost D: Capitalisation of borrowing costs which have arisen for the first time
- Which of the following would normally be classified as a non-current asset and which as a current asset?Petty cash A: Non-current asset B: Current asset
- What is the purpose of charging depreciation in accounts? A: To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use B: To ensure that funds are available for the eventual replacement of the asset C: To reduce the cost of the asset in the statement of financial position to its estimated market value D: To account for the 'wearing-out' of the asset over its life
- A company can change its inventory costing method without mentioning this change in its financial statements because it is an internal management decision. ( )
- Which<br/>of the following is not a change in accounting principle? () A: A<br/>change from LIFO to FIFO B: A<br/>change in estimated salvage value of depreciable asset C: A<br/>change from an accelerated depreciation method to straight-line<br/>depreciation D: A<br/>change from historical cost to fair value accounting.