CA Intermediate Paper 1

AS 10 - Property, Plant and Equipment MCQ

Chapter 12 • 5 Questions from ICAI Study Material

Questions

5

Est. Time

8 min

Source

ICAI Book

Sample Questions: AS 10 - Property, Plant and Equipment

Preview 3 of 5 questions from Chapter 12

1. As per AS 10 (Revised) ‘Property, plant and equipment’, which of the following costs is not included in the carrying amount of an item of PPE

A) Costs of site preparation
B) Costs of relocating ✓
C) Installation and assembly costs.
D) initial delivery and handling costs

2. As per AS 10 (Revised) ‘Property, Plant and Equipment’, an enterprise holding investment properties should value Investment property

A) as per fair value
B) under discounted cash flow model.
C) under cost model ✓
D) under cash flow model

3. A plot of land with carrying amount of ₹ 1,00,000 was revalued to ₹ 1,50,000 at the end of Year 2. Subsequently, due to drop in market values, the land was determined to have a fair value of ₹ 1,30,000 at the end of Year 4. Assuming that the entity adopts Revaluation Model, what would be the accounting treatment of Revaluation?

A) Initial upward valuation of ₹ 50,000 credited to Revaluation Reserve. Subsequent downward revaluation of ₹ 20,000 debited to P/L.
B) Initial upward valuation of ₹ 50,000 credited to P/L. Subsequent downward revaluation of ₹ 20,000 debited to P/L.
C) Initial upward valuation of ₹ 50,000 credited to Revaluation Reserve. Subsequent downward revaluation of ₹ 20,000 debited to Revaluation Reserve. ✓
D) Initial upward valuation of ₹ 50,000 debited to P/L. Subsequent downward revaluation of ₹ 20,000 credited to P/L.