Please answer the following questions:

Select the correct option:

1. Acceptable depreciation methods under IFRS include

a.	Straight-line.
b.	Accelerated.
c.	Units-of-production.
d.	All of the above.

2. The activity method of depreciation

	a.	is a variable charge approach.
	b.	assumes that depreciation is a function of the passage of time.
	c.	conceptually associates cost in terms of input measures.
	d.	all of these.

3. In measuring an impairment loss, IFRS uses

a.	undiscounted cash flows
b.	discounted cash flows
c.	a fair value test.
d.	a replacement value test.

Answer True or False:

4. Under IFRS and U.S. GAAP, interest costs incurred during construction must be capitalized.

5. An accelerated depreciation method is appropriate when the asset's economic usefulness is the same each year.

6. IFRS permits the same depreciation methods as U.S. GAAP, with the exception of the units-of-production method, which is not allowed under IFRS.

7. As with U.S. GAAP, IFRS requires that both direct and indirect costs in self-constructed assets be capitalized.