1. An intangible asset that was acquired separately shall initially be recognized at

None of the choices

Cost

Either cost or fair value at the choice of the acquirer

Recoverable amount

Fair value

2. Land that is related to agricultural activity is measured

In accordance with PAS16 or PAS40

At fair value in combination with the biological asset

At fair value

At the resale value separate from the biological asset

None of the choices

3. Which statement is true

Capitalization always commence as soon as expenditure is incurred

Capitalization always continues until the asset is ready for use

Capitalization always commence as soon as interest on relevant borrowing is being incurred

If funds come from general borrowing, the amount to be capitalized is based on the weighted average amount of expenditures

4. Which of the following statements best describes investment property?

Property held for sale in the ordinary course of business

Property held to earn rentals or for capital appreciation

Property held for capital appreciation

Property held for use in the production and supply of goods or services and property held for administrative purposes

5. Interest revenue on specific borrowing for qualifying asset

Reduces the cost of the qualifying asset

Increases equity

Must be credited to interest income

Reduces the interest expense reported in the income statement

6. Government assistance includes all of the following, except

Free technical advice

All are government assistance

Government procurement policy that is responsible for a portion of the entity's sales

Provision of guarantee

Improved irrigation water system for the benefit of an entire local community

7. Which statement is true regarding agricultural produce?

The prevailing view is that the fair value of agricultural produce at the point of harvest can always be measured reliably.

None of the choices

The fair value measurement of agricultural produce stops at the time of harvest.

In all cases, an entity shall measure agricultural produce at fair value less cost of disposal at the point of harvest.

All of these statements are true regarding agricultural produce.

8. In the case of grant related to an asset, which of the following accounting treatment is prescribed?

Take it to the income statement and disclose it as an extraordinary gain

Record the grant at fair value in the first year and take it to income in the subsequent year

None of the choices

Either set up the grant as deferred income or deduct it in arriving at the carrying amount of the asset

Record the grant at a nominal value in the first year and write it off in the subsequent year

9. Which of the following would be classified as a product that is the result of the processing after harvest

Cotton

Bananas

None of the choices

Wool

Cheese

10. An intangible asset is defined as

An identifiable asset without physical substance

An identifiable nonmonetary asset without physical substance

A nonmonetary asset without physical substance

An identifiable monetary and nonmonetary asset without physical substance

None of the choices

11. Transfers from investment property to property, plant and equipment are appropriate

Based on the discretion of management.

Transfer to PPE is not appropriate

The entity can never transfer property into another classification once it is classified as investment property.

Only when the entity adopts the fair value model.

When there is change of use.

12. This is defined as assistance by government in the form of transfer of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity

Government donation

Government grant

Government assistance

Government aid

None of the choices

13. Which of the following statements is true about measurement of investment property using the fair value model?

The investment property is shown at cost less accumulated depreciation

The increase in fair value is recognized in other comprehensive income

The investment property is not depreciated

The investment property is depreciated using the normal depreciation policy

14. All of the following are classified as agricultural produce except

Sugar

Wool

All are agricultural produce

Milk

Cotton

15. In relation to the amortization of intangible assets, the basic rule under PAS 38 is that unless demonstrated otherwise:

The residual value is presumed to be zero

The residual value does not enter into the determination of the amortization charge

All intangible assets have a residual value at least equal to the amount of maintenance cost incurred

The residual need not be reviewed at the end of each annual reporting period

None of the choices