| What is the remaining balance on the disposals account? | The balance is the profit / loss on the disposal. |
| What is the purpose of the asset register? | "An internal control to ensure information relating to non-current assets in the nominal ledger and the financial statements is correct." |
| When an asset is disposed of, what value should be deducted from the asset register? | The current carrying (Net book) value of the asset only. |
| What part of the sales figure is not recorded in the asset register when an asset is sold? | The revenues and therefore the profit too. |
| What are the two valuation methods for non-current assets allowed in IAS 16? | The cost model or the revaluation model. |
| What is an asset 'class'? | A group of assets that have a similar nature or function in the business. |
| The revaluation method: | Under this method valuation must be kept up to date. |
| What is fair value? | ‘the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction’. |
| What needs to be disclosed if the revaluation method for non-current assets is used? | The effective revaluation date, whether an independent valuation was conducted, the methods used and assumptions made during revaluation, the carrying amount should it have been valued using the cost method, and the revaluation surplus. |
| What is Asset Expenditure? | Expenditure relating to the acquisition or improvement of non-current assets. |
| What is not an asset expenditure? | Expenditure on repairs, renewal, maintenance, etc. |
| What does pro rata mean? | In proportion |
| What account needs to be made when an asset is disposed of? | A Disposals Account . |
| On what statement does an asset disposals account appear? | On the SPL with a natural Dr balance. |
| What is the remaining balance on the disposals account? | The balance is the profit / loss on the disposal. |
| Revaluation Surplus = | Revaluation Amount less Carrying Amount |
| What amount for revaluation surplus will be shown in the Statements of Other Comprehensive Income? | The amount recognised for revaluation surplus for that financial period only. |
| What amount for revaluation surplus will be shown in the Statement of Changes in Equity? | The accumulated revaluation surplus will be shown. |
| Where should a gain in revaluation surplus be shown? | On the face of the Statement of Profit or Loss and Other Comprehensive Income as an item of other comprehensive income. |
