IAS 16 2023 with verified questions and answers

(4) What are the qualitative characteristics of IAS 16 Relevance, Faithful Rep, Comparability, Understandability Qualitative Characteristics of Relevance Revaluation model provides relevant information by showing upto date values indicating what assets are worth. T/F Under the qualitative characteristics of IAS16 - relevance everything in a class should be revaluated T Qualitative Characteristics of Faithful Representation Cost model is more faithful rep than revaluation model. Because cost model based on Historic costs which are fact and it is representative of the value of asset. but it is not most relevant to base future decisions What Under the qualitative characteristics of IAS16 - faithful Rep AIDs verifiability of IAS 16 Recognition criteria What is the point of recognition of criteria? what may be recognized as part of cost and It aids verifiability Qualitative Characteristics of Comparability 1.Standard rules of IAS16 F/S of different companies can be compared because they have been prepared the same. 2.Disclosure of accounting principles and bfwd/cfwd to compare this year and previous Qualitative Characteristics of Understandability ? Disclosure of each class of PPE what has been purchased and sold. If it were merged it would be less understandable. What Under the qualitative characteristics of IAS16 - Understandability is the point of PPE table Showing movements and disclose Depn policy any changes in asset lives