Question Details

Danson Company, a company who uses iGAAP reporting 



1.	Under iGAAP, Sampson Company, who has a non-current asset which has been classified as held-for-sale, should
a.	test the asset's value monthly for impairment.
b.	value the asset at its depreciated historical cost.
c.	depreciate the asset over its remaining life.
d.	not depreciate the asset.

2.	Miller Company, a company who uses iGAAP reporting standards, sells a non-current asset classified as held-for-sale. Which of the following statements is true regarding the treatment of a gain on a subsequent increase in the fair value less cost?
a.	The gain should not be recognized.
b.	The gain should be recognized in full in the income statement.
c.	The gain should be recognized but only in retained earnings.
d.	The gain should be recognized to the extent that it is not in excess of the cumulative impairment loss that has been recognized.
3.	Danson Company, a company who uses iGAAP reporting standards, has a non-current asset that has been classified as held-for-sale. When the asset no longer meets this definition, Danson should
a.	Remove the asset from the balance sheet.
b.	Remeasure the asset at fair value.
c.	Measure the asset at the lower of its carrying value before it was classified as held-for-sale and its recoverable amount at the date when the company decided not to sell it.
d.	Leave the non-current asset on the financial statements at the current carrying value.

4.	Elton Industries, a company who uses iGAAP reporting standards, has assets and liabilities of a disposal group classified as held-for-sale shown on its balance sheet. Which of the following presents the best treatment for these?
a.	These assets and liabilities should be netted and presented as a single amount - either a current asset or a current liability on the balance sheet.
b.	On the balance sheet, the disposal group assets should be shown separately from other assets, while the disposal group liabilities should be shown separately from other liabilities.
c.	The assets and liabilities should be netted and presented as a deduction from equity on the balance sheet.
d.	There should be no separate disclosure of these assets and liabilities on the balance sheet.
5.	Woodson Company, a company who uses iGAAP reporting standards, has identified a group of plant assets for disposal. On January 1, 2010, the carrying value of these assets was 
$17.5 million. The assets were revalued to $16.5 million on January 5, 2010, when they were identified as property for the disposal group. In addition, Woodson thinks that is will cost 
$1.5 million to sell these assets. What carrying amount should these assets reflect for 
year-end financial statements to be prepared on January 10, 2010?
a.	$17.5 million
b.	$16.5 million
c.	$16.0 million
d.	$15.0 million




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help