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CA Final Ind AS 2 Inventories and Ind AS 16 Property, Plant and Equipment — practice questions — page 2

Explore 52 free Ind AS 2 Inventories and Ind AS 16 Property, Plant and Equipment questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 2 Inventories and Ind AS 16 Property, Plant and Equipment questions and exercises with answers

Showing questions 31–52 of 52.

Under the cost model, how is an item of PPE carried?Read the answer and worked solution →Under the revaluation model, an asset is carried at which amount?Read the answer and worked solution →Where is a revaluation increase on PPE normally recognised?Read the answer and worked solution →A revaluation fall hits profit or loss unless it does what?Read the answer and worked solution →PPE carrying Rs 80,000 is revalued to Rs 1,00,000. What goes to revaluation surplus?Read the answer and worked solution →PPE of Rs 5,00,000 is revalued to Rs 6,20,000, no prior surplus. What is charged to profit or loss?Read the answer and worked solution →How must the depreciable amount of an asset be allocated?Read the answer and worked solution →Depreciation for a period is recognised in profit or loss unless it is what?Read the answer and worked solution →The depreciation method chosen must reflect which pattern?Read the answer and worked solution →Cost Rs 1,00,000, residual Rs 10,000, life 5 years. What is yearly straight-line depreciation?Read the answer and worked solution →When is a PPE item derecognised?Read the answer and worked solution →A gain on derecognition of PPE is treated in which way?Read the answer and worked solution →PPE of Rs 60,000 is sold for Rs 72,000. How is the Rs 12,000 treated?Read the answer and worked solution →Which is one of the four inputs used to compute depreciation?Read the answer and worked solution →How is depreciation treated in the cash flow statement?Read the answer and worked solution →Which event may indicate that an asset is impaired?Read the answer and worked solution →Which terms apply to natural resources and intangibles respectively?Read the answer and worked solution →Why might fixed assets be revalued?Read the answer and worked solution →In indexation, what is applied to the cost of assets?Read the answer and worked solution →In the appraisal method, who determines fair market value?Read the answer and worked solution →Why can depreciation on historical cost alone lead to excessive dividends when prices rise?Read the answer and worked solution →How do fixed assets differ from inventory in holding purpose?Read the answer and worked solution →

Worked practice questions

Under the cost model, how is an item of PPE carried?

  1. Cost less depreciation and impairment
  2. Fair value less selling costs
  3. Cost with no depreciation charged
  4. Replacement cost less residual
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Correct answer: A. Cost less depreciation and impairment

The cost model carries PPE at cost less accumulated depreciation and accumulated impairment losses.

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Under the revaluation model, an asset is carried at which amount?

  1. Original cost left unchanged
  2. Fair value less later depreciation
  3. Recoverable amount, undepreciated
  4. Net realisable value at year end
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Correct answer: B. Fair value less later depreciation

The revaluation model uses the fair value at the revaluation date less subsequent depreciation, if fair value is reliably measurable.

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Where is a revaluation increase on PPE normally recognised?

  1. Profit or loss as other income
  2. Directly in retained earnings
  3. OCI as revaluation surplus
  4. Share capital as a bonus
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Correct answer: C. OCI as revaluation surplus

An increase is taken to other comprehensive income and accumulated in equity as revaluation surplus.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property