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11. Choose the most correct answer:

An item of property plant and equipment is depreciated by R100 000 for the period, of which R80 000 is capitalised to another asset. The property plant and equipment roll-forward (i.e. the reconciliation between opening carrying amount and closing carrying amount) that is included in the notes to the financial statements:

Option 1 - would not need to include disclosure of the depreciation for the period.

Option 2 - must include disclosure of the depreciation for the period, measured at R100 000.

Option 3 - must include disclosure of the depreciation for the period, measured at R80 000.

Option 4 - must include disclosure of the depreciation for the period, measured at R20 000.

Option 5 - None of the above answers are correct.

12. Fill in the missing words:

An item of property plant and equipment is acquired, where this item is widely believed to have a usefullife of 10 years. The asset is acquired under a finance lease where the lease period expires after 9 years although the entity expects to use the asset fairly aggressively with the result that it expects the asset to be used for a period of 9 vears after which it will no longer be useful.

The useful life for purposes of depreciation is ...... Years.

Options to use to fill in - 9 years 10 years

13. Indicate whether the following statement is true or false:

When measuring fair value, we are measuring the fair value of a particular asset or liability (or group of assets, group of liabilities or group of assets and liabilities) and thus this measurement should always take into consideration the characteristics of that asset or liability (or group of assets, group of liabilities or group of assets and liabilities).

Option 1 - True

Option 2 - False

14. Indicate whether the following is true or false:

An entity may choose on a class-by-class bases whether to apply the cost model or revaluation model. If an entity chooses to measure a class of property plant and equipment using the revaluation model, the entity may revalue individual assets within that class on different dates on condition that these individual assets are revalued with sufficient regularity that their carrying amounts fairly present their fair values.

Option 1 - True

Option 2 - False

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