CAF-1 · Chapter 3 · Question 15 of 15
How often must an entity review the residual value and useful life of an asset?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) At least at each financial year-end.
Explanation
IAS 16 requires the residual value and useful life of an asset to be reviewed at least at each financial year-end.
More IAS 16 Property, Plant and Equipment MCQs
- Q2Zeta Corp revalues its office building, resulting in an upward revaluation of Rs. 25 million. Previously, an impairment loss of Rs. 10…
- Q3The management of Theta Ltd decides to change the depreciation method of its factory equipment from the straight-line method to the…
- Q4Which of the following assets is excluded from the scope of IAS 16?
- Q5When an item of property, plant, and equipment is initially recognized, how should it be measured?
- Q6Which of the following costs is explicitly EXCLUDED from the cost of an item of PPE?