AASB 116 Prescribes That,if Assets Within the Same Class Are

question 33

Multiple Choice

AASB 116 prescribes that,if assets within the same class are revalued and some assets increased in value while others decreased in value:

• A) the net decrement for the class of asset should be recognised as loss in the income statement.
• B) the net increment for the class of asset should be credited to revaluation reserve.
• C) the total increment for all assets in the same class that increased in value should be credited to revaluation reserve and total decrement for all assets in the same class of asset should be recognised as loss in the income statement.
• D) All of the given answers are correct.

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Definitions:

Financing Activities

Transactions involving changes in equity and borrowings of the company, reported in the cash flow statement.

Net Cash

The difference between a company's total cash inflows and outflows over a specific period.

Operating Activities

Business actions that are directly related to the production, sale, and delivery of products or services, which are reflected in the company's income and cash flow statements.

Cash Basis

A bookkeeping approach that registers income and expenses at the time cash is exchanged, rather than when they are accrued.