TRUE OR FALSE

1. Depreciable amount is not always equal to cost of Property, Plant and Equipment

2. An entity shall choose either cost model or revaluation model as its accounting policy and shall apply that policy to an entire class of PPE subsequent to initial recognition.

3. IAS 16 prescribes the accounting treatment for property, plant and equipment (PPE)

4. Depreciation does not cease when the asset becomes idle

5. PPE are initially measured at cost

6. Depreciation is a systematic allocation of depreciable amount of an asset over its useful life

7. Amendments to IAS 16, (Property, Plant and Equipment - Proceeds before Intended Use) states that an entity recognizes the proceeds from selling such items, and the cost of producing those items in profit or loss