Skip to content

CMA Intermediate · Financial Accounting · Property, Plant and Equipment (AS 10)

Under AS 10 (Property, Plant and Equipment), which of the following items is only ENCOURAGED to be disclosed, and not required to be disclosed, in the financial statements?

The gross carrying amount of fully depreciated property, plant and equipment still in use is only an encouraged disclosure under AS 10. Pledged assets, contractual commitments for acquisition, and assets retired from active use and held for disposal are all required disclosures.

  1. AProperty, plant and equipment pledged as security for liabilities
  2. BAmount of contractual commitments for the acquisition of property, plant and equipment
  3. CGross carrying amount of fully depreciated property, plant and equipment still in useCorrect
  4. DAmount of assets retired from active use and held for disposal

Explanation

AS 10 requires disclosure of assets pledged as security, contractual commitments for acquisition, and assets retired from active use and held for disposal. Disclosure of the gross carrying amount of fully depreciated assets still in use is only encouraged. The other three options are mandatory disclosures.

Did you get it right without looking?

One question tells you little. A timed set on Property, Plant and Equipment (AS 10) shows your real accuracy, how long you take and where you lose marks.

Practise Property, Plant and Equipment (AS 10)Free diagnostic mock

More Property, Plant and Equipment (AS 10) questions