Question 1

Which statement is correct? Under the current accounting standards applying to intangible assets:

Accepted Answer

A)  no internally developed intangible assets should be recognised in the accounts 
B)  all internally developed intangible assets should be recognised in the accounts 
C)  some internally developed intangible assets should be recognised in the accounts 
D)  only goodwill developed internally should not be recognised in the accounts 
A)  no internally developed intangible assets should be recognised in the accounts 
B)  all internally developed intangible assets should be recognised in the accounts 
C)  some internally developed intangible assets should be recognised in the accounts 
D)  only goodwill developed internally should not be recognised in the accounts

Question 2

Which of the following is recommended as the preferred accounting treatment for excess on acquisition?

Accepted Answer

A)  Reduce proportionately the fair values of the non-monetary assets acquired until the excess is eliminated 
B)  Reduce proportionately the fair values of the monetary assets acquired until the excess is eliminated 
C)  Treat it as a deferred credit in the balance sheet and periodically allocate it as income 
D)  Immediately recognise the excess on acquisition as income in the income statement 
A)  Reduce proportionately the fair values of the non-monetary assets acquired until the excess is eliminated 
B)  Reduce proportionately the fair values of the monetary assets acquired until the excess is eliminated 
C)  Treat it as a deferred credit in the balance sheet and periodically allocate it as income 
D)  Immediately recognise the excess on acquisition as income in the income statement

Question 3

Distinguish between identifiable and unidentifiable intangible assets and explain how this distinction has affected the broad accounting treatment in Australia for each.

Accepted Answer

Identifiable intangible assets are those

Question 4

Which of these is not an identifiable intangible asset?

Accepted Answer

A)  Patent 
B)  Franchise 
C)  Television station license 
D)  None of the above, i.e., all are identifiable intangible assets 
A)  Patent 
B)  Franchise 
C)  Television station license 
D)  None of the above, i.e., all are identifiable intangible assets

Question 5

After 1 January 2005,the position that applies in Australia to the amortisation of goodwill is:

Accepted Answer

A)  goodwill must be amortised systematically over the period during which the future economic benefits are expected to be consumed 
B)  goodwill is not required to be systematically amortised and is not subject to an impairment test 
C)  goodwill is not required to be systematically amortised but is subject to an impairment test 
D)  goodwill is to be amortised over a period not exceeding 20 years 
A)  goodwill must be amortised systematically over the period during which the future economic benefits are expected to be consumed 
B)  goodwill is not required to be systematically amortised and is not subject to an impairment test 
C)  goodwill is not required to be systematically amortised but is subject to an impairment test 
D)  goodwill is to be amortised over a period not exceeding 20 years

Question 6

AASB 138 permits two bases for measuring intangible assets,subsequent to initial recognition,the cost model and the revaluation model:

Accepted Answer

A)  in practice the revaluation model is the one that is most commonly applied 
B)  the conditions for the use of the revaluation model will only be met on rare occasions 
C)  in practice the two models are applied about 50/50 
D)  none of the above 
A)  in practice the revaluation model is the one that is most commonly applied 
B)  the conditions for the use of the revaluation model will only be met on rare occasions 
C)  in practice the two models are applied about 50/50 
D)  none of the above

Question 7

In AASB 138,an 'identifiable non-monetary asset without physical substance',is the definition of:

Accepted Answer

A)  an intangible asset 
B)  cash at bank 
C)  goodwill 
D)  none of the above 
A)  an intangible asset 
B)  cash at bank 
C)  goodwill 
D)  none of the above

Question 8

AASB 138 requires that entities classify their intangible assets into those with finite lives and those with indefinite lives.Which of these is a factor that tends to limit the useful life of intangible assets?

Accepted Answer

A)  Technological obsolescence 
B)  Contractual and legal rights 
C)  Uncertainty 
D)  All are factors 
A)  Technological obsolescence 
B)  Contractual and legal rights 
C)  Uncertainty 
D)  All are factors

Question 9

The initial patent period granted by the Australian Government and the potential legal life of trademarks and brand names,are respectively:

Accepted Answer

A)  10 years; unlimited, provided they continue to be registered 
B)  16 years; unlimited, provided they continue to be registered 
C)  20 years; 16 years 
D)  7 years; 7 years 
A)  10 years; unlimited, provided they continue to be registered 
B)  16 years; unlimited, provided they continue to be registered 
C)  20 years; 16 years 
D)  7 years; 7 years

Which statement is correct? Under the current accounting standards applying to intangible assets:

Which of the following is recommended as the preferred accounting treatment for excess on acquisition?

Distinguish between identifiable and unidentifiable intangible assets and explain how this distinction has affected the broad accounting treatment in Australia for each.

Which of these is not an identifiable intangible asset?

After 1 January 2005,the position that applies in Australia to the amortisation of goodwill is:

AASB 138 permits two bases for measuring intangible assets,subsequent to initial recognition,the cost model and the revaluation model:

In AASB 138,an 'identifiable non-monetary asset without physical substance',is the definition of:

AASB 138 requires that entities classify their intangible assets into those with finite lives and those with indefinite lives.Which of these is a factor that tends to limit the useful life of intangible assets?

The initial patent period granted by the Australian Government and the potential legal life of trademarks and brand names,are respectively:

Institutional Arrangements for Setting Accounting Standards in Australia

A Conceptual Framework: Scope, reporting Entity and the Objective of Financial Report

A Conceptual Framework: the Fundamentals of General Purpose Financial Reporting

A Conceptual Framework: Recognition and Measurement of the Elements of Financial Statements

The Choice of Accounting Methods

The Balance Sheet: an Overview

Accounting for Current Assets

Accounting for Property, plant and Equipment

Accounting for Company Income Tax

Accounting for Investments

Accounting for Leases

Accounting for Employee Benefits

Accounting for Financial Instruments

Equity

The Income Statement

The Cash Flow Statement

Financial Reporting: Segment Reporting, value Added Statements, highlights Statements and Future-Oriented Financial Information

Further Financial Reporting Issues

Accounting for the Extractive Industries

Accounting for Real Estate Development and Construction Contracts

Accounting for Agricultural Activity

Accounting for Superannuation Plans

Accounting for Financial Institutions

Financial Reporting in the Public Sector

International Accounting Standards, harmonisation and Convergence

Foreign Currency Translation

Accounting for Corporate Social Responsibilities

Ethics in Accounting

Filters

Exam 11: Accounting for Intangible Assets

Which statement is correct? Under the current accounting standards applying to intangible assets:

Which of the following is recommended as the preferred accounting treatment for excess on acquisition?

Distinguish between identifiable and unidentifiable intangible assets and explain how this distinction has affected the broad accounting treatment in Australia for each.

Which of these is not an identifiable intangible asset?

After 1 January 2005,the position that applies in Australia to the amortisation of goodwill is:

AASB 138 permits two bases for measuring intangible assets,subsequent to initial recognition,the cost model and the revaluation model:

In AASB 138,an 'identifiable non-monetary asset without physical substance',is the definition of:

AASB 138 requires that entities classify their intangible assets into those with finite lives and those with indefinite lives.Which of these is a factor that tends to limit the useful life of intangible assets?

The initial patent period granted by the Australian Government and the potential legal life of trademarks and brand names,are respectively:

Institutional Arrangements for Setting Accounting Standards in Australia

A Conceptual Framework: Scope, reporting Entity and the Objective of Financial Report

A Conceptual Framework: the Fundamentals of General Purpose Financial Reporting

A Conceptual Framework: Recognition and Measurement of the Elements of Financial Statements

The Choice of Accounting Methods

The Balance Sheet: an Overview

Accounting for Current Assets

Accounting for Property, plant and Equipment

Accounting for Company Income Tax

Accounting for Investments

Accounting for Leases

Accounting for Employee Benefits

Accounting for Financial Instruments

Equity

The Income Statement

The Cash Flow Statement

Financial Reporting: Segment Reporting, value Added Statements, highlights Statements and Future-Oriented Financial Information

Further Financial Reporting Issues

Accounting for the Extractive Industries

Accounting for Real Estate Development and Construction Contracts

Accounting for Agricultural Activity

Accounting for Superannuation Plans

Accounting for Financial Institutions

Financial Reporting in the Public Sector

International Accounting Standards, harmonisation and Convergence

Foreign Currency Translation

Accounting for Corporate Social Responsibilities

Ethics in Accounting

Filters