Definitions

Question 1

Define a qualifying asset

Answer 1

A qualifying asset is one that takes a substantial period of time to get ready for its intended use or sale.

Question 2

Under IAS 16 the cost of PPE is the

Answer 2

Purchase price plus any directly attributable costs to bring the asset to its present location and condition for intended use

Question 3

3 criteria for provisions

Answer 3

A present obligation as a result of the past event
Probable outflow of economic benefit
Reliable estimate 

Question 4

the principle of recognizing expenses immediately (i.e., not overstating assets) and not recognizing income until it is reasonably certain (i.e., deferring revenue recognition).

Answer 4

Prudence