According to the IPSASB's Conceptual Framework, how would you define an "asset"?Please select the right answer.Sorry, your answer was not correct!A resource owned by a public sector entity as a result of past events and from which future economic benefits are expected to flow to the enterpriseA resource presently controlled by a public sector entity as a result of past eventsA resource owned and controlled by a public sector entity as a result of past events and from which service potential is generatedNone of the above

International accounting standards are created by the International Public Sector Accounting…

Answered: Please select the right answe Sorry,…

Please select the right answe Sorry, your answer was A resource owned A resource presen A resource owned X None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

According to the IPSASB's Conceptual Framework, how would you define an "asset"?
Please select the right answer.
Sorry, your answer was not correct!
A resource owned by a public sector entity as a result of past events and from which future economic benefits are expected to flow to the enterprise
A resource presently controlled by a public sector entity as a result of past events
A resource owned and controlled by a public sector entity as a result of past events and from which service potential is generated
None of the above

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Which of the following statement best defines an asset? a. An asset is a resource owned by the entity with a financial value b. An asset is resource controlled by the entity from which future economic benefits are expected to be generated c. An asset is a resource controlled by an entity because of past events d. An asset is a resource controlled by an entity as a result of past events from future economic benefits are expected to be generated
How does the Conceptual Framework define an asset? Select one alternative A resource to which an entity has a future commitment as a result of past events and from which future economic benefits are expected to flow from the entity A resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity A resource owned by an entity as a result of past events and from which future economic benefits are expected to flow to the entity A resource over which an entity has legal rights as a result of past events and from which economic benefits are expected to flow to the entity
In order for an asset to be recognized in the financial statements, which of the following definition is consistent with the IASB framework? Select one: a. Asset is a resource controlled by the entity from which future economic benefits are expected to flow to the entity. b. Asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. c. Asset is a resource controlled by the entity as a result of future events and from which future economic benefits are expected to flow to the entity. d. Asset is a resource controlled by the entity as a result of present events and from which future economic benefits are expected to flow to the entity.
A performance obligation is satisfied over time if: Group of answer choices The customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity performs. All of these are correct. The entity’s performance creates an asset with an alternative use to the entity and the entity does not have an enforceable right to payment for performance completed to date. The entity’s performance creates or enhances an asset that the entity controls.
Which one of the following situation where a performance obligation is satisfied over time ? a- The entity's performance creates an asset that the customer controls as it is created b- The customer does not receive or consume the benefits provided by the entity's performance until the obligation is completely satisfied c- The entity does not have an enforceable right to payment for the performance that has been completed to date d- The entity's performance creates an asset which has an alternative use to the entity
If an entity wishes to change from a cost model to fair value model under IAS 40 – Investment Property, when may it do so? Select one: a. When the market for these properties is fluctuation b. When the board of directors approves a change c. When the value of the assets will improve with a revised model d. When a change will result in a more appropriate presentation
Which one of the following is an essential characteristic of an asset? A. The inflow of future economic benefits is controlled by the enterprise B. It must be exclusively owned and must be exchangeable C. The cost of the asset can be measured accurately D. It is a result of either a past or predictable transaction or activity
Which is not within the definition of an intangible asset? A resource from which future economic benefits are expected to flow to the enterprise Identifiable nonmonetary asset without physical substance A resource controlled by an enterprise as a result of past events Held for use in the production or supply of goods or services, for rental to others, or for administrative purposes.
1. What is the accounting difference between using the modified approach for infrastructure assets and depreciating infrastructure assets? Under the modified approach, what happens if infrastructure assets are not maintained at or above the established condition level? 2. What is a special assessment? How does funding for a special assessment capital improvement differ from other capital improvements in a local government?
How should research and development costs be accounted for, according to an IASB Statement? a. Must be capitalized when incurred and then amortized over their estimated useful lives. b. Must be expensed in the period incurred. c. May be either capitalized or expensed when incurred, depending upon the materiality of the amounts involved. d. Must be expensed in the period incurred unless it can be clearly demonstrated that the expenditure will have alternative future uses or unless contractually reimbursable.
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