Reference no: EM132893302

Problem 1: According to IAS 16, which of the following items is not considered capitalisable cost of property, plant & equipment?

A. Costs of site preparation.

B. Initial delivery and handling costs.

C. Costs of opening a new facility.

D. Professional fees.

Problem 2: In the case of a share issue being oversubscribed, excess application monies:

A. must be recorded as revenue in the current financial period.

B. will always be transferred to allotment and/or call accounts.

C. must be placed in a trust account until a refund is requested by applicants.

D. may be refunded to applicants.

Problem 3: Which of these statements below is true?

A. Any employee benefits that have been earned but not paid as at the reporting date are assets of the employer.

B. Non-vesting sick leave that has accumulated will be paid to employees when their employment ceases.

C. Post-employment benefits can include the employee's insurance and medical costs.

D. In a defined contribution plan, the employer effectively bears the risks associated with the movements in the value of the superannuation plan set up for its employees.

Problem 4: Which of the following groups of items is not classified as intangible assets?

A. Trademarks, newspaper mastheads, internet domain names, and noncompetition agreements.

B. Training activities costs, customer list, advertising and promotional activities and customer relationships.

C. Performance events, literary works, musical works, pictures, motion pictures and television programs.

D. Lease agreements, broadcast rights, employment contracts, and use rights (such as drilling rights or water rights).