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Free ACCA Financial Reporting Practice Questions & Answers

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Question 241

Under which model must all assets in the same class of PPE be measured consistently?

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Question 242

Which of the following would typically require an impairment review at year end?

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Question 243

Which of the following costs should be expensed immediately and NOT capitalised as part of a new machine?

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Question 244

An asset costing 50,000 has a useful life of 5 years and a residual value of 5,000. Using straight-line depreciation, what is the annual charge?

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Question 245

What is the carrying amount of an asset with cost 80,000, accumulated depreciation 32,000 and an impairment loss of 8,000?

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Question 246

Which of the following events would NOT trigger an impairment review?

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Question 247

What is useful life in the context of PPE depreciation?

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Question 248

A machine costing 100,000 with a residual value of 10,000 and a useful life of 5 years is depreciated straight-line. After 2 years, the residual value is revised to zero. What is the annual depreciation going forward?

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Question 249

Under the revaluation model, when a property is revalued upward for the first time, the revaluation gain is:

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Question 250

When PPE is revalued, accumulated depreciation at the date of revaluation is typically treated by:

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Question 251

An asset is revalued upward by 200,000. There was a previous revaluation deficit of 80,000 charged to profit or loss. How is the current gain recognised?

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Question 252

Which of the following correctly describes borrowing costs eligible for capitalisation under a specific borrowing?

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Question 253

When does capitalisation of borrowing costs commence?

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Question 254

Borrowing costs are capitalised until:

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Question 255

A government grant related to a depreciable asset is presented using two possible methods. Which of the following correctly describes Method 1?

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Question 256

A government grant related to revenue is received in advance of the expenditure it is intended to compensate. It should be:

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Question 257

A government gives an entity a low-interest loan at 2% when the market rate is 6%. Under IAS 20, the benefit is treated as:

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Question 258

An impairment review is triggered by an indicator such as a significant market value decline. The impairment test compares:

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Question 259

A cash-generating unit (CGU) is relevant in impairment testing when:

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Question 260

What is the key criterion that distinguishes investment property from owner-occupied property?

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Question 261

An entity using the revaluation model for a class of land revalues it from carrying amount 300,000 to fair value 220,000. No previous revaluation surplus exists for this asset. The revaluation loss of 80,000 is recognised:

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Question 262

Under IAS 36, which of the following is NOT an internal indicator of impairment?

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Question 263

An asset is sold for 35,000. Its cost was 100,000 and accumulated depreciation at disposal was 72,000. What is the gain or loss on disposal?

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Question 264

Capitalisation of borrowing costs is suspended when:

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Question 265

Government grant repayment: an entity repays 30,000 of a grant originally received for an asset. The remaining unamortised deferred income is 20,000. What is the income statement impact?

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Question 266

An entity reviews impairment indicators annually. In the current year, there are no indicators. Is a formal impairment test required?

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Question 267

Under IAS 16, can an entity change from the revaluation model back to the cost model?

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Question 268

An entity has borrowing costs of 400,000 on general borrowings and average expenditure on a qualifying asset of 2,000,000 out of total general borrowings of 5,000,000. What is the capitalisation rate and amount capitalised?

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Question 269

An asset originally cost 200,000 and has been depreciated for 3 years at 20,000 per year. It is now revalued to 175,000. What is the revaluation gain or loss?

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Question 270

In year 3 of an asset's life, management decides to extend its remaining useful life from 2 years to 5 years. Carrying amount at start of year 3 is 120,000 with no residual value. What is the new annual depreciation charge?

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Free ACCA Financial Reporting Practice Questions & Answers

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