IFRS allows, but does not require, revaluation of property, plant, and equipment to fair value. True or False
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- Which of the following statements is correct? a. Both IFRS and GAAP permit revaluation of property, plant, and equipment. b. IFRS permits revaluation of property, plant, and equipment but not GAAP. c. Both IFRS and GAAP do not permit revaluation of property, plant, and equipment. d. GAAP permits revaluation of property, plant, and equipment but not IFRS.Why allow the fair value option for financial assets and liabilities and not for, say, buildings or land?TRUE OR FALSE If an intangible asset is successfully defended from a legal challenge, the incurred legal costs are capitalized to the asset account.
- Under IFRS, a loss from the destruction of property in a fi re would most likely be classifi ed as: B . continuing operations.Describe why allow the fair value option for financial assets and liabilities and not for buildings or land?Impairment of an intangible asset occurs when the book value of an asset is less than the fair value. True O False
- Are litigation costs to defend an intangible asset capitalized or expensed? Explain your answer.Transfers from investment property to property, plant and equipment are appropriate a. The entity can never transfer property into another classification on the balance sheet Once it is classified as investment property. b. When there is change of use. c. Only when the entity adopts the fair value model under IAS 38. d. Based on the entity’s discretion.Under U.S. GAAP, litigation costs to successfully defend an intangible right are capitalized and amortized over the remaining useful life of the related intangible. How are these costs typically accounted for under IFRS?
- "Depreciation is a valuation process that results in the reporting of the fair value of the asset.” Do you agree? Explain.Upon first-time adoption of IFRS, an entity may elect to use fair value as deemed cost for a. biological assets related to agricultural activity for which there is no active market. b. intangible assets for which there is no active market. c. any individual item of property, plant, and equipment. d. financial liabilities that are not held for trading.Explain Intangible Assets Not Subject to Amortization.