Exam 13: Intangible Assets

Wojtowicz Limited was involved in a mining exploration business. It commenced a project to design more efficient gold detecting equipment. The following expenditures occurred during the financial year ended 2013: Researcher's salary $5000 Research consumables $3000 Re-development of the detecting equipment $4000 Final adjustments to the detecting equipment $2500. The amount to be capitalised by this company as an intangible asset, for the 2013 financial year, is:

Parsons Limited was involved in a highly successful plastics manufacturing business. It commenced a project to design a more efficient extrusion system for its plastic pipes. The following outlays occurred: January Research salaries $50 000 February Research materials $30 000 March re-development of the extrusion plant $400 000 April Final adjustments to the extrusion plant $25 000. The amount to be expensed by this company at the end of the financial year, 30 June, is:

The measurement of fair value is determined in accordance with IFRS 13 Fair Value Measurement. IFRS 13 defines fair value as one that has all of the following conditions:

According to the definition provided in IAS 38 Intangibles, activities undertaken in the 'research' phase of the generation of an asset may include:

Items such as market knowledge, effective advertising programs, fundraising capabilities and trained staff are NOT regarded as assets because they:

Under IAS 38 Intangibles, an intangible asset with an indefinite useful life is:

IAS 38 Intangibles, requires that the following items in relation to intangibles, each be disclosed separately:

Unless acquired under a business combination, intangible assets must be initially measured using which of the following measurement approaches?