Reference no: EM132690590

Problem 1: Under AASB 116, the net method of treating accumulated depreciation when assets are re-valued requires:

Select one:

a. accumulated depreciation to be closed to the asset account before re-valuation

b. accumulated depreciation to be ignored at re-valuation

c. accumulated depreciation to be increased by the same proportion as the gross carrying amount of the asset, so the carrying amount of the asset represents its re-valued amount

Problem 2: In the Framework, 'the present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits' is the definition of:

Select one:

a. revenues

b. liabilities

c. expenses