Skip to content

ACCA Applied Knowledge · Financial Accounting · Tangible non-current assets

Under IAS 16 Property, Plant and Equipment, which of the following must be disclosed in the financial statements for each class of property, plant and equipment?

Depreciation methods and useful lives or depreciation rates must be disclosed for each class of property, plant and equipment. IAS 16 requires these so users can understand how the carrying amounts were arrived at. Supplier names, insurance costs and expected selling prices are not required.

  1. AThe depreciation methods used and the useful lives or depreciation rates usedCorrect
  2. BThe expected selling price of each asset at the end of its useful life
  3. CThe names of the suppliers from whom each asset was purchased
  4. DThe insurance premium paid on each asset during the year

Explanation

IAS 16 requires disclosure for each class of the measurement bases used, the depreciation methods, the useful lives or rates, and the gross carrying amount and accumulated depreciation. Supplier names, insurance premiums and expected selling prices are not required disclosures.

Did you get it right without looking?

One question tells you little. A timed set on Tangible non-current assets shows your real accuracy, how long you take and where you lose marks.

Practise Tangible non-current assetsFree diagnostic mock

More Tangible non-current assets questions