Reference no: EM132684711

Problem 1: Assume IFRS permits IAG to choose as its accounting policy for aircraft. Which measurement model would provide the most relevant information about aircraft?

(a) Historical cost;

(b) Cost model;

(c) Fair value model;

(d) Revaluation model;

or (e) Expense the historical cost of the aircraft in the period in which it is acquired.

Problem 2: Which IFRS specifies accounting that IAG must follow in accounting for its aircraft?

(a) IAS 2 Inventories;

(b) IAS 16 Property, Plant and Equipment;

(c) IAS 38 Intangible Assets:

(d) IAS 40 Investment Property;

or (e) IFRS 9 Financial Instruments.

Problem 3: Which IFRS measurement model/s is/are available to IAG to account for its aircraft?

(a) Cost model;

(b) Fair value model;

(c) Revaluation model;

(d) Cost model or fair value model (depending on its accounting policy);

or (e) Cost model or revaluation model (depending on its accounting policy).