Which of the Following Statements Is Correct

question 61

Multiple Choice

Which of the following statements is correct?

• A) IFRS treats major overhauls that allow the continued use of an asset, as replacements; ASPE usually treats them as expenses.
• B) ASPE treats major overhauls that allow the continued use of an asset, as replacements; IFRS usually treats them as expenses.
• C) Both IFRS and ASPE treat major overhauls that allow the continued use of an asset, as replacements.
• D) Both IFRS and ASPE treat major overhauls that allow the continued use of an asset, as expenses.

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Definitions:

Expected Income

The amount of money one anticipates earning over a specific period, considering various factors like salary, investments, and other income sources.

Probability

An indicator of the probability that a particular event will happen, denoted as a value ranging from 0 to 1.

Certain Income

refers to money or revenue that is guaranteed or highly likely to be received, with minimal risk of variation or loss.

Fair Insurance Policy

Describes an insurance contract that provide coverage at reasonable, transparent, and equitable terms for both parties.