IAS 16/AASB 116 Defines the Cost of Acquisition for Fixed

question 24

Multiple Choice

IAS 16/AASB 116 defines the cost of acquisition for fixed assets as:

• A) purchase cost plus any incidental costs directly attributable to acquiring the asset and getting it ready for use.
• B) invoice cost.
• C) carrying value in the previous owner's books.
• D) invoice cost plus freight inwards, plus other costs of acquiring the asset.

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Definitions:

Age In Place

To remain in the same home and community in later life, adjusting but not leaving when health fades.

Pool Resources

The act of combining assets, funds, or talents of a group of people for a common purpose or benefit.

Compulsive Hoarding

The urge to accumulate and hold on to familiar objects and possessions, sometimes to the point of their becoming health and/or safety hazards. This impulse tends to increase with age.

Material Items

Material items are physical objects that can be touched and owned, often used to fulfill needs or desires, including everything from personal belongings to commodities in trade.