Platypus Ltd Has an Item of Plant with a Cost

question 17

Multiple Choice

Platypus Ltd has an item of plant with a cost of $4 200,000, and at 30 June 20X5 the accumulated depreciation was $600,000 and its estimated residual amount $200,000.Platypus Ltd has adopted the revaluation model for the class of assets, but the asset has not previously been revalued.
-At reporting date, the directors determined that the asset's fair value was $3,750,000.What is the carrying amount of the asset at 30 June 20X4 and what type of revaluation - if any - was carried out during the reporting period and how was it recognised?

• A)carrying amount $3,750,000; revaluation decrement $150,000 recognised as an expense
• B)carrying amount $3,750,000; revaluation increment $150,000 recognised in the asset revaluation reserve
• C)carrying amount $3,950,000; revaluation increment $250,000
• D)carrying amount $3,950,000; revaluation decrement $250,000 recognised as a reduction in the asset revaluation reserve

Understand payroll tax obligations imposed on both employee and employer.

Identify and differentiate between types of contingencies and their treatment in financial statements.

Understand the criteria for classifying liabilities as current or long-term.

Distinguish between accounting practices for contingencies under GAAP and IFRS.

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Definitions:

Gombe, Tanzania

A national park in Tanzania, East Africa, known for Jane Goodall's groundbreaking research on chimpanzee behavior and society.

Conservation Strategies

Methods and approaches used to protect and preserve natural resources, biodiversity, and ecosystems from degradation or depletion.

Primates

a group of mammals that includes humans, apes, monkeys, and prosimians, characterized by a large brain, complex social structures, and dexterous hands.

Primate Reserves

Designated conservation areas aimed at protecting primate species and their natural habitats.