SBR Assets, revenue and leases

A machine with a carrying amount of $600,000 is revalued to $750,000. Where is the $150,000 recorded?

• 1 Profit or loss
• 2 Retained earnings directly
• 3 Other comprehensive income, accumulated in a revaluation surplus
• 4 Reduced from other assets

An asset has a carrying amount of $500,000, fair value less costs of disposal of $420,000 and value in use of $450,000. The impairment loss is:

• 1 $50,000
• 2 $30,000
• 3 $80,000
• 4 $0

An impairment loss on a cash-generating unit is allocated first to:

• 1 Current assets
• 2 Inventory
• 3 Goodwill
• 4 The largest asset

Under IAS 38, development expenditure is capitalised only when:

• 1 It is incurred after the year end
• 2 It relates to research
• 3 It is more than 10 percent of profit
• 4 Technical feasibility, intention, ability to use or sell, future benefits, resources and reliable measurement are shown

A non-current asset classified as held for sale is measured at:

• 1 Fair value only
• 2 The lower of carrying amount and fair value less costs to sell
• 3 Value in use
• 4 Cost

A contract bundles products A and B for $1,000. Their stand-alone selling prices are $900 and $300. The amount allocated to A under IFRS 15 is:

• 1 $900
• 2 $750
• 3 $1,000
• 4 $500

A lessee has three annual payments of $10,000 in arrears and a discount rate of 10 percent. The initial lease liability is closest to:

• 1 $24,869
• 2 $22,000
• 3 $30,000
• 4 $27,000

Under IFRS 16, a lessee normally recognises in its statement of financial position:

• 1 A right-of-use asset and a lease liability
• 2 A lease expense only
• 3 The leased asset at fair value only
• 4 A deferred income balance