On 30 September 2012 the directors of Diego pIc decided to sell the company's services division and the division was classified as held for sale. The sale is expected to be completed, along with the sales of related assets, in early December 2012. One item of plant within this division had originally cost $30,000 and had a carrying amount of $15,000 on 1 November 2011. Diego plc will carry on using this plant until it is sold. Diego pIc has a year end of 31 October and depreciates all plant on a monthly straight-line basis using a monthly rate of 1%.

In accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, what amount will berecognizedin the statement of financial position of Diego pIc as at 31 October 2012 in respect of this plant?

A company is developing a new production process. During 2012, expenditure incurred was $100,000, of which $90,000 was incurred before 1 December 2012 and $10,000 between 1 December 2012 and 31 December 2012. The company can demonstrate that, at 1 December 2012, the production process met the criteria for recognition as an intangible asset. The recoverable amount of the know-how embodied in the process is estimated to be $50,000.

How should the expenditure be treated?

A conceptual framework is a statement of generally accepted theoretical principles which form the frame of reference for financial reporting.

Which of the following is NOT a disadvantage of conceptual framework?