AASB 116 Specifies That If an Item of Property,plant and Equipment

question 14

Multiple Choice

AASB 116 specifies that if an item of property,plant and equipment is sold,then the gain or loss on disposal is measured as the difference between:

• A) the carrying amount at the time of disposal and the net proceeds from disposal
• B) the re-valued amount at the time of disposal and the net proceeds from disposal
• C) the adjusted carrying amount at the time of disposal and the net proceeds from disposal
• D) none of the above

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Definitions:

Settlement

The resolution or agreement reached in a dispute, negotiation, or transaction.

Concessions

The act of yielding or granting something in a negotiation, often in exchange for something else from the other party.

Fait Accompli

An accomplished fact, a deed already done, leaving no opportunity for others to alter the situation.

Distributive Bargaining

A negotiation strategy where parties compete to divide a fixed asset or amount, where one's gain is the other's loss.