Question

AASB 116 requires disclosure, for each class of property, plant and equipment
Select one:
a. the useful lives or the depreciation rates used
b. the deprecation methods used
c. the measurement bases used for determining the gross carrying amount
d. all of the options are correct.

Answer 1

Correct answer:

Option (d) is collect answer specifies that all options given are correct. As per AASB 116 requires disclosure, for each class of property, plant and equipment should disclosure; 1) the useful lives or the depreciation rates used, 2)the deprecation methods used 3)the measurement bases used for determining the gross carrying amount 4) the gross carrying amount and the accumulated depreciation at the beginning and ending of the year. So all are the correct options.

Incorrect answers:

Option (a) or the useful lives or the depreciation rates used is incorrect answer because as per 116 requires disclosure, for each class of property, plant and equipment should also disclose other options such as the deprecation methods used, the measurement bases used for determining the gross carrying amount and so on.

Option(b) or the deprecation methods used is incorrect answer because as per 116 requires disclosure, there are also other options should disclose such as the useful lives or the depreciation rates used, the measurement bases used for determining the gross carrying amount and so on.

Option (c) or the measurement bases used for determining the gross carrying amount is incorrect answer because as per 116,each class of property, plant and equipment should disclose other options such as the useful lives or the depreciation rates used, the deprecation methods used and so on.

So correct answer is option (d)