According to IAS 36,a Non-Current Asset Should Be

question 75

Multiple Choice

According to IAS 36,a non-current asset should be:

• A)revalued downwards where the net amount that is expected to be recovered through the cash inflows and outflows from its continued use and subsequent disposal exceeds its cost.
• B)written down to its replacement cost when the recoverable amount is greater than its value in use.
• C)written down to its recoverable amount when its carrying amount is greater than its recoverable amount.
• D)revalued upwards where its value in use is greater than its net realisable value.

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Definitions:

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Licenses

Legal permits granted by an authority, allowing individuals or companies to carry out certain activities or businesses that would otherwise be unlawful.

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The cost advantage achieved by an enterprise when production becomes efficient, as costs can be spread over a larger amount of goods.

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The total quantity of a good or service that all consumers are willing and able to purchase at various prices during a given period.