AS 10 - Property, Plant and Equipment MCQ

Question 1

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

C) Installation and assembly costs.

D) initial delivery and handling costs

Answer

B) Costs of relocating ✓

Question 2

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.

D) under cash flow model

Answer

C) under cost model ✓

Question 3

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.

D) Initial upward valuation of ₹ 50,000 debited to P/L. Subsequent downward revaluation of ₹ 20,000 credited to P/L.

Answer

C) Initial upward valuation of ₹ 50,000 credited to Revaluation Reserve. Subsequent downward revaluation of ₹ 20,000 debited to Revaluation Reserve. ✓

AS 10 - Property, Plant and Equipment MCQ

Sample Questions: AS 10 - Property, Plant and Equipment