According to IAS 16, a Decrease in the Carrying Amount

question 32

Multiple Choice

According to IAS 16, a decrease in the carrying amount of a fixed asset that is identified on an asset's first revaluation should be recorded as:

• A) an expense on the income statement.
• B) a prior period adjustment to retained earnings.
• C) a credit to Revaluation Surplus.
• D) a debit to Revaluation Surplus.

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Definitions:

Accusatory Tone

A manner of communication that implies blame or wrongdoing, often leading to defensive or hostile reactions from the recipient.

Direct Approach

The direct approach in communication involves straightforwardly stating the main point or purpose at the beginning, followed by supporting details or explanations.

Vacation Policy

A company's formal plan outlining the amount of paid or unpaid time off employees are allowed to take for leisure or personal needs.

Inductive Approach

A reasoning method that starts from specific observations to develop general conclusions or theories.