GROUP 1 (PAS 36 – 38)

Abegail Valesco
Fritzie Angela Campoy
Trisha Albia
Rendel Bagtasos
Jealie Ann Duhilag

TRUE OR FALSE
T 1.. An asset is impaired if its carrying amount exceeds its recoverable amount.
T 2. Assets within the scope of PAS 36 are noncurrent assets.
F 3. Recoverable amount is the amount at which an asset is recognized after deducting any
accumulated depreciation and accumulated impairment loss.
F 4. Reversal of impairment loss is recognized in other comprehensive income.
T 5. Discount rate is a pre-tax rate that reflects current assessments of the time value of money
and risk for which the future cash flow estimates have not been adjusted.
T 6.Provision is an existing liability of uncertain timing or uncertain amount.
F 7.Contingent asset is a possible obligation whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the entity.
T 8. Provisions are measured at the best estimate, expected value or mid-point, whichever is
appropriate.
F 9. Provisions are normally recognized as credit to expense (or loss) and debit to an estimated
liability account.
T 10. Provisions are presented in the statement of financial position separately from other
types of liabilities.
IDENTIFICATION

11. Essential elements of an intangible asset.

Answer:
Identifiability
Control
Future economic benefits

12.Intangible assets are initially measured at

Answer:
Cost

13. Costs incurred in establishing a new business.

Answer:
Organizational costs/start-up costs

14. How should intangible assets with no active market measured?

Answer:
Cost model

15. Two models of how intangible assets measured subsequently.

Answer:
Cost model
Revaluation model