1. For INITIAL measurement identify the initial valuation criteria and for SUBSEQUENT measurement identify the situation requiring the subsequent measurement and the ongoing valuation basis.
a) The asset loses value over time due to age.
b) The asset value increases or decreases based on market conditions.
c) The probable future benefit is re-set each year as the asset’s cost is allocated to the appropriate periods of benefit.
d) The liabilities are reduced due to the aging of the assets in place.
2. The valid measurement approaches do not include?
a) Temporal methods of depreciation such as straight line, double declining balance, and sum-of-the-year digits
b) Activity-based methods of depreciation such as units-of- production and activity-based depletion of natural resources
c) Amortization of intangible assets using the straight-line approach
d) Immediate write-off methods
3. The necessary entry for recording a transaction related to PP&E would include a debit and credit to what?