Select the most correct answer/s: gross Plant, purchased at a cost of N$220 000 on 1 January 2021 and depreciated to a nil residual value over 5 years, is revalued to N$330 000 at 31 December 2022. 

Consider the following statements relating to issues regarding classification and recognition in terms of IAS 38 Intangible Assets:

1. An intangible asset is any identifiable asset, other than monetary assets, that has no physical substance.

2. Before an entity may recognise an intangible asset, it must have legally enforceable rights over an item's expected future economic benefits.

3. Before an entity may recognise an intangible asset, it must have control over the asset.

4. An intangible asset acquired in a business combination will be expensed by the acquirer if the definition of intangible asset is not met (e.g. the identifiability criteria is not met).

5. Internally generated customer lists, brands and goodwill may be capitalised.

Identify whether the following statement is true or false: 

When remeasuring an asset's carrying amount to reflect fair value , using the revaluation model, we must first eliminate any accumulated depreciation against the carrying amount account (i.e. cost).  

Identify whether the following statement is true or false, and if false, justify your answer: 

The two measurement models allowed under IAS 16 Property, plant and equipment  are the net replacement value method (also known as the elimination method) and the gross replacement value method (proportional restatement method). 

Land may be subsequently measured using either the cost model or the revaluation model.

(Indicate whether the above statement is true or false)

Save-the-Rhino purchased land on 1 July 2017 at a cost of N$300 000. The company applies the revaluation model to land and assessments of fair value take place every two years.

On 31 December 2019 the land was revalued to its fair value of N$350 000. On 31 December 2021 the land was revalued again to its fair value of N$400 000. On 31 December 2023 the land had a value in use of N$270 000 and a fair value less costs of disposal of N$285 000, where the costs to sell were negligible.

The fair value adjustment for the year ended 31 December 2023 is disclosed as follow:

An entity using the cost model is allowed to change to the revaluation model, where this change is a change in accounting policy.

(Indicate whether the above statement is true or false)

If an asset’s carrying amount is decreased as a result of a revaluation, this decrease shall be recognised in profit or loss, except to the extent that it reduces a credit balance in the revaluation surplus account (other comprehensive income/equity).

(Indicate whether the above statement is true or false)

Irrespective of whether an item of property, plant and equipment is measured under the cost model or the revaluation model, it must be tested for impairment.

(Indicate whether the above statement is true of false)

The revaluation surplus balance, which is included in equity, must be transferred to retained earnings only upon disposal of the asset.