CAF-1 · Chapter 3 · Question 4 of 15
Which of the following assets is excluded from the scope of IAS 16?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Inventory held for sale in the ordinary course of business.
Explanation
Inventories held for resale in the ordinary course of business are accounted for under IAS 2, not IAS 16.
More IAS 16 Property, Plant and Equipment MCQs
- Q6Which of the following costs is explicitly EXCLUDED from the cost of an item of PPE?
- Q7If an entity acquires a new asset in exchange for an old asset, and the transaction has commercial substance, how is the new asset measured?
- Q8How should an entity account for a major inspection or overhaul of an item of PPE?
- Q9Under the revaluation model, how frequently should revaluations be made?
- Q10If an asset's carrying amount is decreased as a result of an initial revaluation, how is this decrease treated?