Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
a. Disposal group |
It is group of assets to be disposed of by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. a. Disposal group b. Discontinued operation c. Noncurrent asset d. Cash generating unit |
|
|
a. The carrying amount of the asset or disposal group is recovered through a sale transaction |
An entity shall classify a noncurrent asset or disposal group as held for sale when a. The carrying amount of the asset or disposal group is recovered through a sale transaction. b. The carrying amount of the asset or disposal group is recovered through continuing use. c. The noncurrent asset or disposal group is abandoned. d. The noncurrent asset or disposal group is idle or retired from active use. |
|
|
d. The sale is expected to qualify for recognition as a completed sale within two years from the date of classification of the asset as held for sale. |
For the sale of a noncurent asset to be highly probable, which of the following statements is incorrect? a. Management must be committed to a plan to sell the asset. b. An active program to locate a buyer and complete the plan must have been initiated. c. The asset must be actively marketed for sale at a reasonable price in relation to the current fair value. d. The sale is expected to qualify for recognition as a completed sale within two years from the date of classification of the asset as held for sale. |
|
|
c. lower of carrying amount and fair value less cost of disposal. |
An entity shall measure a noncurrent asset or disposal group classified as held for sale at a. Carrying amount b. Fair value less cost of disposal c. lower of carrying amount and fair value less cost of disposal. d. Higher of carrying amount and fair value less cost of disposal. |
|
|
a. Current asset |
Noncurrent asset classified as held for sale shall be presented as a. Current asset b. Other noncurrent asset c. Noncurrent investment d. Property, plant and equipment |
|
|
b. Accounted for as an impairment loss. |
If the fair value less cost of disposal is lower than the carrying amount of a noncurrent asset classified as held for sale, the difference is a. Not accounted for. b. Accounted for as an impairment loss. c. Charged to depreciation. d. Debited to retained earnings. |
|
|
c. The gain shall be recognized but not in excess of the cumulative impairment loss previously recognized |
What is the treatment of any gain on a subsequent increase in the fair value less cost of disposal of a noncurrent asset classified as held for sale? a. The gain shall be recognized in full b. The gain shall not be recognized. c. The gain shall be recognized but not in excess of the cumulative impairment loss previously recognized. d. The gain shall be recognized but only in retained earnings. |
|
|
a. The carrying amount is recovered principally through continuing use |
A noncurrent asset that is to be abandoned shall not be classified as held for sale because a. The carrying amount is recovered principally through continuing use. b. It is difficult to value c. It is unlikely that the noncurrent asset is sold within twelve months. d. It is unlikely that there is an active market for the noncurrent asset. |
|
|
b. The assets of the disposal group shall be reported separately under current assets and the liabilities of the disposal group shall be reported separately under current liabilities |
How should the assets and liabilities of a disposal group classified as held for sale be reported in the statement of financial position?
a. The assets and liabilities shall be offset and presented as a single amount. b. The assets of the disposal group shall be reported separately under current assets and the liabilities of the disposal group shall be reported separately under current liabilities c. The assets and liabilities shall be presented as a single amount and as a deduction from equity. d. There should be no separate disclosure of assets and liabilities that form part of a disposal group. |
|
|
c. The lower of carrying amount on the basis that the asset had never been classified as held for sale and recoverable amount |
An entity classified a noncurrent asset accounted for under the cost model as held for sale at the current year-end. Because no offers were received at an acceptable price, the entity decided at the end of next year not to sell the asset but to continue to use it. The asset shall be measured at the end of next year at what amount? a. The lower of carrying amount and recoverable amount b. The higher of carrying amount and recoverable amount c. The lower of carrying amount on the basis that the asset had never been classified as held for sale and recoverable amount d. The higher of carrying amount on the basis that the asset had never been classified as held for sale and recoverable amount |
