Usefulness of ‘useful life’

How did the change in depreciation affect the tech companies mentioned?

Decreased profits

Increased revaluation surpluses

Decreased revaluation surpluses

Increased profits

Which of the following does a change in the estimated useful life represent?

A change in accounting estimate

None of the above

A change in accounting policy

A correction of an error

Which, if any, of the following statements are true? Statement 1, Changes in accounting estimates are adjusted prospectively, or statement 2, Changes in accounting policies are adjusted retrospectively

Neither statement

Statement 1 only

Both statements

Statement 2 only

How is an acquisition of a footballer recorded in the statement of profit or loss?

Recognised immediately as an expense

Never recognised, as an indefinite-lived asset

Only recognised if impaired

Amortised over the contract life

Which of the following is also adjusted retrospectively per IAS 8?

Prior period errors

Accounting judgments

Revision of residual values

Adjustments to provisions

Reducing the lives of assets will have what impact on the statement of financial position?

None of the above

Reduce the asset values

Increase the expense

Increase other comprehensive income

Which of the following items will be amortised?

Goodwill

Acquisition of property

Acquisition of a brand with an indefinite life

Acquisition of a 10-year licence

Which of these statements is true? Statement 1, Impairment on goodwill can never be reversed, or statement 2, Companies are able to decide the useful life of an asset if there is no contractual limit

Statement 2 only is true

Statement 1 only is true

Neither statement is true

Both statements are true

How does Netflix record production costs?

As inventory

Amortised over the life of the content

Capitalised and held as an indefinite-lived asset

Expensed immediately

Which, if any, of the following statements is correct? Statement 1, Under amortisation of an asset could lead to losses on disposal, or statement 2, amortisation has no impact on the operating profits of the business

Statement 1 only is correct

Neither statement is correct

Both statements are correct

Statement 2 only is correct

Usefulness of ‘useful life’

How did the change in depreciation affect the tech companies mentioned?

Which of the following does a change in the estimated useful life represent?

Which, if any, of the following statements are true? Statement 1, Changes in accounting estimates are adjusted prospectively, or statement 2, Changes in accounting policies are adjusted retrospectively

How is an acquisition of a footballer recorded in the statement of profit or loss?

Which of the following is also adjusted retrospectively per IAS 8?

Reducing the lives of assets will have what impact on the statement of financial position?

Which of the following items will be amortised?

Which of these statements is true? Statement 1, Impairment on goodwill can never be reversed, or statement 2, Companies are able to decide the useful life of an asset if there is no contractual limit

How does Netflix record production costs?

Which, if any, of the following statements is correct? Statement 1, Under amortisation of an asset could lead to losses on disposal, or statement 2, amortisation has no impact on the operating profits of the business

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