Carrying amount
Cost (or valuation) less accumulated depreciation and impairment.
The amount at which an asset is recognised after deducting accumulated depreciation and accumulated impairment losses.
Passende Übungsfragen
☝️ Single
A machine cost £24,000 and is depreciated at 25% per annum on the reducing balance method. What is the depreciation charge for the SECOND year of ownership?
£18,000
£6,000
£4,500
£12,000
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☝️ Single
Equipment originally costing £12,000 with accumulated depreciation of £9,000 is sold for £4,000. What is the profit or loss on disposal?
Loss of £1,000
Profit of £1,000
Profit of £4,000
Loss of £9,000
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☝️ Single
Under IAS 16, which of the following is a correct treatment of the cost of replacing an engine in a vehicle that the entity expects to use for several more years?
Always expense the cost as repairs and maintenance
Capitalise the cost if it meets the recognition criteria, and derecognise the carrying amount of the replaced engine
Add the cost to inventory
Record it as a prepayment and release it to profit or loss over one year
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Its results are ignored until a dividend is received
It is fully consolidated line by line
It is accounted for using the equity method
The investor normally holds 20% or more of the voting power and has significant influence
It is always carried at fair value through profit or loss
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