This case aims to provide practical experience in implementing IAS $16$ and $40$ This assignment requires students to review IAS $16$ and $40$ Knowledge of professional standards is important to accountants$$ abilities to serve their employers and to avoid professional, regulatory and legal

sanctions for non$-$compliance.

a Palestinian listed firm. Based on the $2022$ the annual report of the selected firm, answer the following questions:

a$.$ Based on the description of the selected company, what sort of equipment and property do you think the company has?

b$.$ Which amount is shown on the $2022$ balance sheet for property, plant, and equipment? what does this number represent?

c$.$ What types of equipment does annual report in notes to the financial statements?

d$.$ Is there a disclosure notice for "assets under construction?" What does this sub$-$account represent? Why is there no cumulative depreciation in this account??

e$.$ How does your selected firm depreciate its property and equipment? Does this policy seem reasonable?

f$.$ Explain the trade$-$offs management makes in choosing a depreciation policy.

g$.$ Use the information in the financial statement notes to analyze the activity in the "Property,

plant and equipment" and "Accumulated depreciation and impairment" accounts for $2022.$

Determine the following amounts:

$1.$ The purchase of new property, plant and equipment in fiscal $2022.$

$2.$ Depreciation expense for fiscal $2022$

$3.$ The net book value of property, plant, and equipment that the company disposed of

in fiscal $2022.$

h$.$ Did the statement of cash flows report any proceeds received from the sale of property,

plant, and equipment amounting to in fiscal $2022?$ Calculate the gain or loss that the

company incurred on this transaction. $($Hint: use the net book value you calculated in part

$(3),$ above.

i$.$ Under International Financial Reporting Standards $($IAS $16),$ firms are permitted to revalue

assets upward to fair market. Did the selected company use a revaluation model as

described in IAS $16?$ If no$,$ should the selected company adopt the revaluation model for its property, plant and equipment or continue to carry them at cost$?$ What are the advantages and disadvantages of the revaluation model?

j$.$ To what extent is each model $($cost or revaluation$)$ consistent with the qualitative

characteristics of useful financial information discussed in the IASB$$s Conceptual

Framework?

k$.$ IAS $16,$ paragraph $43,$ requires companies to assess the components of each class of assets

and separately amortize each component that is $$significant$$ to the total cost of the item. What assets of the selected company should be divided into components for amortization purposes?

l$.$ In addition to the items already discussed, what additional disclosures will the selected company be required to make under IAS $16?$ To what extent are these disclosures consistent with the qualitative characteristics of useful financial information contained in the IASB$$s Conceptual Framework.