In the 2018 Conceptual Framework, the recognition of an asset is contingent upon which of the following criteria?

(Choose all the correct options)

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.

Consider the following three properties in context of IAS 40 Investment property:

1. A property is held by Adam, a lessee, as a right-of-use asset. Adam uses the property to earn rental income. The lease is accounted for by the lessor as a finance lease, on the basis that ownership of the property will transfer to Adam at the end of the lease.

2. A property is held by Eve, a lessee, as a right-of-use asset. Eve uses the property to earn rental income, The lease is accounted for by the lessor an operating lease, on the basis that ownership of the property will not transfer to Eve at the end of the lease.

3. A property is held by Cain, a lessee, but where Cain expenses the property rentals in terms of the recognition exemption allowed in IFRS 16 (i.e. Cain does not account for the property as a right-of-use asset). Cain uses the property to earn rental income. The lease is accounted for by the lessor an operating lease, on the basis that ownership of the property will not transfer to Cain at the end of the lease.

(Choose one correct option only)

Which measurement basis is explicitly defined as "the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date"?

Abba Limited purchased an investment property on 1 January 2024 for N$500 000. It incurs the following costs upon purchase:

• transfer duty of N$50 000

• start-up costs of N$10 000, which were necessary to bring the property to the condition necessary for it to be used to earn rental income

• improvements to building totalling N$70 000

• repairs to damage caused by builders who were doing the improvements, of N$30 000.

The amount at which the building is initially measured is:

(Choose one correct option only)

According to The Conceptual Framework, prudence

1. is the exercise of caution when making decisions under conditions of uncertainty

2. means that assets and income are not overstated and that liabilities and expenses are not understated

3. does not allow for the understatement of assets or income or the overstatement of liabilities or expenses

1. Inventory is measured at the lower of cost and net realisable value, where the latter is a market-based measure.

2. Inventory is measured at the lower of cost and net realisable value, where the latter is an entity-specific measure.

3. Net realisable value is measured at the fair value achievable on the open market.

4. Net realisable value is measured at the selling price in the ordinary course of business less costs to bring the asset into a saleable condition and less costs to sell.

5. Net realisable value is measured at the selling price, in the ordinary course of business, for the goods in their current condition, less selling costs.

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

1. Not all intangible assets are amortised, as some have indefinite useful lives.

2. The residual value used when amortising an intangible asset is generally zero

3. All intangible assets must be amortised using the straight-line method

4. Intangible assets are amortised over the asset’s economic useful life starting from the date it is first available for use.

Consider the following statements in relation to IFRS 18, Presentation and Disclosure in Financial Statements:

1. Items that are material to users are presented or disclosed separately.

2. Items that are immaterial to users maybe aggregated with other items, with clear descriptions of the item, and disclosing the amounts of the highest items.

3. There is no need to disclose information required by an IFRS if it is not material.

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.