Where an Asset's Carrying Amount Based on Its Cost Is

question 33

Multiple Choice

Where an asset's carrying amount based on its cost is written down to its recoverable amount,AASB 136 specifies that:

• A) Since this constitutes a revaluation of the asset, all assets in that class must be revalued.
• B) The amount written down is to be treated as an adjustment to the asset revaluation reserve.
• C) The write-down is not considered to be a revaluation and so the entity is not obliged to revalue that whole class of non-current assets.
• D) To the extent that the asset was revalued upward in the past, the amount of the write-off may be transferred to the asset revaluation reserve and any remaining amount should be expensed.
• E) None of the given answers.

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Definitions:

Interrole Conflict

Occurs when the expectations of different roles that an individual occupies clash with each other.

Role Conflict

A situation where there are incompatible demands placed upon a person relating to their job or position, causing stress or dysfunction.

Intrasender Role Conflict

Occurs when an individual receives conflicting expectations from the same source, leading to confusion and frustration.

Expectations

Expectations refer to beliefs about what will happen in the future or how someone should behave, acting as a reference point for evaluating outcomes.