It is necessary to report both the cost and the accumulated depreciation of plant assets in the financial statementsGroup of answer choicesTrueFalse

Assume Four Ltd adopts the cost model for the after-recognition measurement of its plant under AASB 116: Property, Plant and Equipment on 1 July 2022. Related plant impairment losses of $100,000 were recognised in its financial statements for the year ended 30 June 2023. Four Ltd’s directors have elected to use the straight-line method of depreciation with zero (0) estimated residual value over the plant’s useful life.In Four Ltd’s 30 June 2023 financial statements,the net carrying amount for plant must be presented at the:Group of answer choicesCurrent replacement costInitial acquisition costCost less accumulated depreciation and impairment lossesLiquidation value

Depreciation of the business is recorded in which of the following financial statement

A loss on disposal of a plant asset is reported in the financial statementsGroup of answer choicesin the Other Revenues and Gains section of the income statement.in the Other Expenses and Losses section of the income statement.as a direct increase to the capital account on the balance sheet.as a direct decrease to the capital account on the balance sheet.

Expenditures that maintain the operating efficiency and expected productive life of a plant asset are generallyGroup of answer choicesdebited to the Accumulated Depreciation account.expensed when incurred.capitalized as a part of the cost of the asset.not recorded until they become material in amount.

How is the carrying amount of a plant asset determined?Group of answer choicesBy subtracting the accumulated depreciation from the asset’s historical costBy multiplying the asset’s historical cost by its depreciation rateBy adding the accumulated depreciation to the asset’s historical costBy dividing the asset’s historical cost by its estimated useful life