FAR Study 112220

What are the function expense categories for a NFP entity?

Selling Expenses include the following?

Under IFRS, an impairment test is a one-step test. The carrying amount of an asset is compared with its -------------------------------------------

Under IFRS, an impairment test is a one-step test. The carrying amount of an asset is compared with its recoverable amount. An impairment loss is recognized for the excess of the carrying amount over the recoverable amount. The recoverable amount is the greater of an asset’s----------------------------------------------------------------------------------------

What is the methodology that should be used to measure and record depreciation expense under IFRS?

Under ---------, each part of an item with a cost significant to the total cost must be depreciated separately. But an entity may separately depreciate parts that are not significant.

Lore Co. changed from the cash basis of accounting to the accrual basis of accounting during the year just ended. The cumulative effect of this change should be reported in Lore’s financial statements for the year as a

land purchased as an investment should be reported in an ---------------------------------, not PPE, because it is not used in the entity’s ordinary operations.