Consistent with AASB 116 the Costs of Facilities That Are

question 55

Multiple Choice

Consistent with AASB 116 the costs of facilities that are depreciable assets associated with an area of interest should be:

• A) depreciated over the life of the area of interest for which they were acquired unless they can be transported to another site or can otherwise be of further use not necessarily connected with any particular area of interest, in which case they should be depreciated over their own specific useful lives.
• B) depreciated over the expected life of the associated mining rights.
• C) depreciated using a method that matches the recovery of future benefits and the pattern of revenue streams generated by the area of interest.
• D) depreciated straight-line over the expected useful life of the particular asset except where the expected life of the area of interest is less than that of the non-current asset. In that case the asset should be depreciated for a period matching the expected life of the area of interest.

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Definitions:

Serious Crime

A criminal offense that is considered severely harmful to individuals or society, typically involving violence or the threat of violence, and carrying heavy penalties.

Imprisonment

The act of confining someone in a prison as a legal punishment for committing a crime.

Felony

A serious criminal offense that is usually punishable by imprisonment for more than one year or by death.

Capital Offense

A crime that is punishable by death under the legal system.