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For question 23, why do we not include the depreciation of the plant in the profit or loss of the property? does the word “propertty” include “plant or is it two different things? I am asking this due to ias 16 property, plant and equipment as they could all be grouped under one single name.
For question 25, I think that the first answer is also right since the sale of the land is highly probable within 12 months of classification. Why is the first answer not right?
Question 23 specifically refers to “… the property” and does not refer to “… property, plant and equipment”
Question 25 – for an asset to be available to be re-classified as ‘held for sale’ the asset must be available for immediate sale. In option 1, the land is not available for immediate sale – it still has a building on it that needs to be demolished
OK?
For question 28, why are non-current liabilities measured at amortised cost and not at fair value through profit and loss? they should be measured at FVTPL since convertible bonds contain rights in addition to the repayment of interest and principal( the right to convert the bond to equity). hence, they fail the contractual cash flow characteristic test and cannot be measured at amortised cost. moreover, must both the business model test and cash flow characteristic test be passed to measure an asset or liability at amortised cost?
for question 29, why are the transaction costs not removed from the value of the shares by 31 march 2004?
For question 30, the gain on investment should be recorded in the statement of profit or loss since the shares are held for trading. however, the dividend received is an income. why is it not recorded in the statement of other comprehensive income?
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