A class of non-current assets as defined by IAS 116 is a category of non-current assets that:
A)were all purchased at the same time by the reporting entity.
B)all have a similar nature or function in the operations of the entity.
C)are disclosed as a single item without supplementary dissection in the financial report.
D)all have a similar nature or function in the operations of the entity, and are disclosed as a single item without supplementary dissection in the financial report.

Question

Quizplus · Accepted Answer

A class of non-current assets as defined by IAS 116 is a category of non-current assets that have a similar nature or function in the operations of the entity and are disclosed as a single item without supplementary dissection in the financial report. Option A is incorrect because the assets in a class may have been purchased at different times. Option B is partially correct, but it is not necessary for the assets to have the same nature and function in operations. Option C is also partially correct, but the assets in a class must have a similar nature and function in operations.

A Class of Non-Current Assets as Defined by IAS 116