• (a) Consider a non-current asset such as a rental property. Explain how such a non-current asset can be valued using different methods (or measurements of value), as detailed in the NZ Conceptual Framework and NZ IAS 16.

Write about 1-2 paragraphs

• (b) Consider a non-current asset such as an aircraft. Explain how costs related to such a non-current asset are recognized. Hint: There are initial costs, recurring (or operating) costs, costs to repair and maintain, and costs to improve (or upgrade).

Write about 1-2 paragraphs

• (c) On 20 April 2022, Pear Ltd acquired Tangerine Ltd for $76,000 cash. Both assets and liabilities were acquired including: Accounts Receivable $13,000, Inventory $21,000, Equipment $43,000 and Accounts Payable $8,000. Required: Record this acquisition in Pear Ltd’s general journal (note that narration is not required).

Answer rating: 100% (QA)

Answer a According to NZ IAS 16 Property requires that an item of property that qualifies for recognition as an asset shall initially be measured at its cost The cost of item of property is measured a... View the full answer