Question Tag: Equipment

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FR – Nov 2023 – L2 – Q3a – Property, Plant, and Equipment (IAS 16)

Explain reclassification criteria for transferring investment property to PPE.

Question

a. If a property is transferred into or out of the category of property, plant and equipment (PPE), it might be reclassified as investment property or as no longer an investment property.

A transfer of investment property can only be made where there is a change of use of such property.

Answer

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Tags: Equipment, IAS Compliance, Investment Property, Plant, Property, Reclassification
Level: Level 2

Topic: Property, Plant, and Equipment (IAS 16)

FA – Nov 2012 – L1 – SA – Q9 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Identifying what does not lead to improvement of property, plant, and equipment.

Question

Which of these may NOT lead to improvement in respect of Property, Plant and Equipment?

A. Extension of economic life of the asset
B. Repairs and maintenance of asset
C. Increased quality of output
D. Faster production
E. Reduced operating costs

Answer

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Tags: Equipment, Improvements, Plant, Property
Level: Level 1

Topic: Accounting for Property, Plant, and Equipment (PPE) IAS 16
Series: NOV 2012

FA – Nov 2013 – L1 – SA – Q1 – Financial Statements Preparation

Determining the total cost for equipment recognition.

Question

Fred Manufacturing Enterprise purchased equipment for N150,000. The equipment was transported at a cost of N15,000 and installed at a cost of N7,500. The employees were trained in the use of the equipment at a cost of N50,000.

At what cost will the equipment be recognised in the books of account?

A. N150,000
B. N157,500
C. N165,000
D. N172,500
E. N222,500

Answer

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Tags: Accounting principles, Asset Valuation, Cost Accounting, Equipment
Level: Level 1

Topic: Financial Statements Preparation
Series: NOV 2013

AA – Dec 2022 – L2 – Q5c – Audit and Assurance Evidence

Explains three assertions relevant to the audit of tangible non-current assets.

Question

You were recently appointed by Danso & Co Chartered Accountants. You were part of the team that audited a construction company with a huge asset base. Your Manager reviewed your file and raised questions that audit evidence obtained was not relevant since it did not address any assertions of property, plant, and equipment. ISA 500: Audit Evidence requires that audit evidence must be sufficient, relevant, and reliable.

Required:
Explain THREE (3) assertions relevant to the audit of tangible non-current assets

Answer

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Tags: Assertions, Audit Process, Equipment, Plant, Property, Tangible Non-Current Assets
Level: Level 2

Topic: Audit and Assurance Evidence
Series: DEC 2022

CR – Mar 2023 – L3 – Q3a – Non-current assets: sundry standards (IAS 16, IAS 23, IAS 20 and IAS 40) ,IAS 36: Impairment of Assets,

Discuss the impairment of a printing machine owned by Dajanso Plc, including necessary computations.

Question

Dajanso Plc owns a number of printing shops across the country. On 1 January 2021, the carrying amount of Dajanso’s largest printing machine was GH¢65 million. The machine had a remaining useful life of five years and a residual value of GH¢7 million using the cost model. Due to a fall in demand for printed books, management conducted an impairment review of the printing machine on 30 June 2021.

At this date, the estimated selling price was GH¢55 million, including GH¢4 million, which would be received after reconditioning the asset. Agent fees would be 5% of the appropriate fair price. If the machine is kept in use, it is estimated to generate real cash flows of GH¢20 million a year over its remaining life (now estimated to be three years), with a revised residual value of GH¢6 million. The following discount rates are applicable:

Rate Type	Pre-tax Nominal	Pre-tax Real	Post-tax Nominal	Post-tax Real
Discount Rate (p.a.)	11.9%	8.3%	10.5%	6.6%

Required:
In line with IAS 16 Property, Plant, and Equipment and IAS 36 Impairment of Assets, recommend how Dajanso would account for the plant in its financial statements for the year ended 31 December 2021. Show appropriate computations where necessary.

Answer

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Tags: Equipment, Impairment, Plant, Property, Recoverable Amount, Value in Use
Level: Level 3

Topic: IAS 20 and IAS 40), IAS 36: Impairment of assets
Series: MAR 2023

FR – Nov 2023 – L2 – Q3a – Property, Plant, and Equipment (IAS 16)

Explain reclassification criteria for transferring investment property to PPE.

Question

a. If a property is transferred into or out of the category of property, plant and equipment (PPE), it might be reclassified as investment property or as no longer an investment property.

A transfer of investment property can only be made where there is a change of use of such property.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Equipment, IAS Compliance, Investment Property, Plant, Property, Reclassification
Level: Level 2

Topic: Property, Plant, and Equipment (IAS 16)

FA – Nov 2012 – L1 – SA – Q9 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Identifying what does not lead to improvement of property, plant, and equipment.

Question

Which of these may NOT lead to improvement in respect of Property, Plant and Equipment?

A. Extension of economic life of the asset
B. Repairs and maintenance of asset
C. Increased quality of output
D. Faster production
E. Reduced operating costs

Answer

Find Related Questions by Tags, levels, etc.

Tags: Equipment, Improvements, Plant, Property
Level: Level 1

Topic: Accounting for Property, Plant, and Equipment (PPE) IAS 16
Series: NOV 2012

FA – Nov 2013 – L1 – SA – Q1 – Financial Statements Preparation

Determining the total cost for equipment recognition.

Question

At what cost will the equipment be recognised in the books of account?

A. N150,000
B. N157,500
C. N165,000
D. N172,500
E. N222,500

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Asset Valuation, Cost Accounting, Equipment
Level: Level 1

Topic: Financial Statements Preparation
Series: NOV 2013

AA – Dec 2022 – L2 – Q5c – Audit and Assurance Evidence

Explains three assertions relevant to the audit of tangible non-current assets.

Question

Required:
Explain THREE (3) assertions relevant to the audit of tangible non-current assets

Answer

Find Related Questions by Tags, levels, etc.

Tags: Assertions, Audit Process, Equipment, Plant, Property, Tangible Non-Current Assets
Level: Level 2

Topic: Audit and Assurance Evidence
Series: DEC 2022

CR – Mar 2023 – L3 – Q3a – Non-current assets: sundry standards (IAS 16, IAS 23, IAS 20 and IAS 40) ,IAS 36: Impairment of Assets,

Discuss the impairment of a printing machine owned by Dajanso Plc, including necessary computations.

Question

Rate Type	Pre-tax Nominal	Pre-tax Real	Post-tax Nominal	Post-tax Real
Discount Rate (p.a.)	11.9%	8.3%	10.5%	6.6%

Answer

Find Related Questions by Tags, levels, etc.

Tags: Equipment, Impairment, Plant, Property, Recoverable Amount, Value in Use
Level: Level 3

Topic: IAS 20 and IAS 40), IAS 36: Impairment of assets
Series: MAR 2023

Question Tag: Equipment

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FR – Nov 2023 – L2 – Q3a – Property, Plant, and Equipment (IAS 16)

Explain reclassification criteria for transferring investment property to PPE.

FA – Nov 2012 – L1 – SA – Q9 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Identifying what does not lead to improvement of property, plant, and equipment.

FA – Nov 2013 – L1 – SA – Q1 – Financial Statements Preparation

Determining the total cost for equipment recognition.

AA – Dec 2022 – L2 – Q5c – Audit and Assurance Evidence

Explains three assertions relevant to the audit of tangible non-current assets.

CR – Mar 2023 – L3 – Q3a – Non-current assets: sundry standards (IAS 16, IAS 23, IAS 20 and IAS 40) ,IAS 36: Impairment of Assets,

Discuss the impairment of a printing machine owned by Dajanso Plc, including necessary computations.

FR – Nov 2023 – L2 – Q3a – Property, Plant, and Equipment (IAS 16)

Explain reclassification criteria for transferring investment property to PPE.

FA – Nov 2012 – L1 – SA – Q9 – Accounting for Property, Plant, and Equipment (PPE) in Accordance with IAS 16

Identifying what does not lead to improvement of property, plant, and equipment.

FA – Nov 2013 – L1 – SA – Q1 – Financial Statements Preparation

Determining the total cost for equipment recognition.

AA – Dec 2022 – L2 – Q5c – Audit and Assurance Evidence

Explains three assertions relevant to the audit of tangible non-current assets.

CR – Mar 2023 – L3 – Q3a – Non-current assets: sundry standards (IAS 16, IAS 23, IAS 20 and IAS 40) ,IAS 36: Impairment of Assets,

Discuss the impairment of a printing machine owned by Dajanso Plc, including necessary computations.

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