Under AASB 116 When an Asset Is Revalued and the Gross

question 20

Multiple Choice

Under AASB 116 when an asset is revalued and the gross method is used,accumulated depreciation:

• A) must be written back to profit.
• B) must be closed off to reduce the asset account.
• C) is ignored during revaluation as it has not effect on carrying amount.
• D) should be increased by the same proportion as the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals the revalued amount.

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Definitions:

Early Retirement

The act of leaving one's professional career or occupation before the typical retirement age, often incentivized by employers.

Excess Labour

A situation where the number of workers available exceeds the number of jobs available, often leading to unemployment or underemployment.

Seniority

The concept of prioritizing employees for benefits, promotions, or layoffs based on their length of service or tenure with an organization.

Less Competent Employees

Workers who possess lower levels of skill, knowledge, or ability compared to the expected standard or their peers.