TEST YOUR KNOWLEDGE (A.M. SESSION)

The Bank enters into a contract with a software provider in relation to provision of services, support fees and maintenance of the current existing software amounting to RM300,000 annually for a period of 5 years. The Bank then recognizes the contract amount as fixed asset under category of 07000 – computer software.

• TRUE

• FALSE

The Bank sells an iPhone and iPad which initially costed at RM5,500 and RM2,500 respectively to a leaving manager at a price of RM2,000 in total. The Bank shall treat the transaction as?

• Impairment

• Disposal

• Write-Off

• Expenses

If the proceeds received from the sale of a capital asset are greater than its net book value, the Bank shall recognize it as?

• An expenses

• A gain

• A loss

• A breakeven

Which of the following terms does this statement define: “the amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount”?

• Depreciation

• Fair Value

• Impairment loss

• Value in use

Which of the following DOES NOT define investment property?

• Property held to earn rentals

• Property held for capital appreciation

• Property used for production or supply of goods or services

• A and C