QUESTION $1(5$ MARKS$)$

Which of the following conditions are to be met for property under operating lease to be classified as investment property?

The rest of the definition of investment property is met.

II$.$ The operating lease is accounted for as if it were finance lease in accordance with IAS $17$ Leases.

III. The lessee uses the fair value model set out in this standard for the asset recognised.

Select one only:

A$.$ I, II$,$ and III

B$.$ I only

C$.$ II only

D$.$ I and II only

$2.$ Which item is encouraged but not required for disclosure of intangible assets?

A$.$ Details of the intangible assets and their carrying amounts

B$.$ Distinction between internally$-$generated intangible assets and acquired intangible assets

C$.$ Reconciliation between opening and closing balances of intangible assets.

D$.$ A description of any fully amortized intangible assets that are still in use.

$3.$ Which statement is INCORRECT regarding recognition of intangible assets?

A$.$ An intangible asset can only be recognized if its cost can be measured reliably.

B$.$ An intangible asset should be initially recorded at cost$.$

C$.$ An intangible asset can be recorded at its fair value if its cost cannot be ascertained.

D$.$ An intangible asset acquired in exchange of another asset can be recognized at the fair value of the asset given up in exchange.

$4.$ A company purchased a piece of equipment in January $2010$ for R$120000.$ The equipment had an estimated residual value at that time of $R30000.$ Company policy is to charge a full year's depreciation in the year of purchase and to depreciate equipment using the straight line method over $6$ years. On $1$ July $2011$ a review of equipment prices indicated that a revised residual value of $R20000$ would be more appropriate. What would be the depreciation charge for the year ended $30$ June $2012?$