X Limited entered into the following inventory-related transactions, listed in date order:

• 01 March 20X5: opening balance: 80 units, all bought on 28 February 20X5 at N$50 each

• 10 March 20X5: 40 units bought at N$70 each

• 15 March 20X5: 160 units bought at N$80 each

• 21 March 20X5: 140 units sold

1. If using the first-in-first-out method, the cost of goods sold for the month ended 31 March 20X5 will be N$8 400 and the inventory closing balance on 31 March 20X5 will be N$11 200.

2. If using the first-in-first-out method, the cost of goods sold for the month ended 31 March 20X5 will be N$11 200 and the inventory closing balance on 31 March 20X5 will be N$8 400.

3. If using the weighted average method, the cost of goods sold for the month ended 31 March 20X5 will be N$9 800 and the inventory closing balance on 31 March 20X5 will be N$9 800.

4. If using the weighted average method, the cost of goods sold for the month ended 31 March 20X5 will be N$9 333 and the inventory closing balance on 31 March 20X5 will be N$10 267.

A depreciable asset was purchased on 1 January 20X1 at a cost of N$100 000. It is depreciated over a 5-year useful life to a residual value of nil. At 31 December 20X1, it has a recoverable amount of N$72 000. At 31 December 20X2, its recoverable amount is N$70 000.

(Choose one correct option only)

A non-depreciated asset has a cost of N$100 000. At the end of 20X1, it has a recoverable amount of N$80 000. At the end of 20X2, its recoverable amount is N$140 000.

(Choose one correct option only)

A depreciable asset was purchased on 1 January 20X1 at a cost of N$100 000. It is depreciated over a 5-year useful life to a residual value of nil. At 31 December 20X1, it has a recoverable amount of N$72 000. At 31 December 20X2, its recoverable amount is N$55 000.

(Choose one correct option only)

The carrying amount of an asset is N$50 000, the value in use is N$45 000 and the fair value is N$30 000 and the costs of disposal is N$10 000.

(Select one correct option only)

Consider the following statements regarding the calculation of ‘recoverable amount’ in context of IAS 36 Impairment of assets:

1. ‘Value in use’ reflects the present value of the net cash flows from using the asset whereas ‘fair value less cost of disposal’ reflects the present value of the net cash flows from selling the asset.

2. When calculating the value in use of an asset, we should never include cash flows that are based on projections that exceed a 5-year period.

3. When calculating value in use, we must use a pre-tax discount rate.

Consider the following statements regarding the calculation of ‘recoverable amount’ in context of IAS 36 Impairment of assets:

1. All assets are tested for impairment in terms of IAS 36 Impairment of assets.

2. If an asset is impaired, the decrease in carrying amount will be recognised as an impairment loss in profit or loss.

3. If an asset is impaired, the decrease in carrying amount will be recognised as an impairment loss in other comprehensive income if the asset is measured under the revaluation model.

Consider the following statements regarding recoverable amount in context of IAS 36 Impairment of assets:

1. The recoverable amount is the greater of value in use and fair value.

2. The recoverable amount must be calculated annually.

3. When calculating recoverable amount, the costs of disposal that we take into account should not include finance costs and income tax expense.

(Choose the correct option only)

Consider the following statements in context of IAS 40 Investment property and identify the correct option:

Consider the following statement in context of IAS 40 Investment property: