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7. The useful life of an item of property, plant and equipment shall be reviewed at least at each
financial year-end and if expectations are significantly different from previous estimate, the
depreciation charge for the
a. Current period only shall be adjusted
b. Future period only shall be adjusted
c. Prior periods shall be adjusted
d. Current and future periods shall be adjusted
8. The depreciation method applied to property, plant and equipment shall be reviewed at least
at each financial year-end and if there has been a significant change in the expected pattern
of consumption of economic benefits from those assets, the change
a. Shall be accounted for as a change in accounting policy
b. Shall not be recognized
c. Shall be accounted for as a change in accounting estimate
d. Shall be accounted for as correction of a prior period error
9. The useful life of an item of property, plant and equipment is
I. The period of time over which an asset is expected to be used by the entity.
II. The number of production or similar units expected to be obtained from the asset by
the entity.
a. I only
b. II only
c. Both I and II
d. Neither I nor II
10.Technical or commercial obsolescence arises from
a. Expected usage of the asset
b. Expected physical wear and tear
c. Changes or improvements in production or change in the market demand for the
product output of the asset
d. Expiry date of related lease of the asset