Question 1

If an intangible asset is allocated to an entity via a government grant,it can initially be recognised at fair value.

Accepted Answer

A) True 
 B)False

Question 2

When an intangible asset is acquired by an exchange of assets,which of the following measures will need to be considered in the determination of the cost of the intangible asset?

Accepted Answer

A) The fair value of the asset given up. 
B) The initial cost of the asset given up. 
C) The carrying amount of the asset received. 
D) The replacement cost of the asset received. 
A) The fair value of the asset given up. 
B) The initial cost of the asset given up. 
C) The carrying amount of the asset received. 
D) The replacement cost of the asset received.

Question 3

An identifiable non-monetary asset without physical substance is known as a/an:

Accepted Answer

A) tangible asset. 
B) intangible asset. 
C) non-physical asset. 
D) non-current asset. 
A) tangible asset. 
B) intangible asset. 
C) non-physical asset. 
D) non-current asset.

Question 4

Renouf 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 during the year ended 30 June 2014: research salaries $50 000; research materials $30 000; re-development of the extrusion plant $400 000; 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 2014,is:

Accepted Answer

A) $30 000. 
B) $50 000. 
C) $80 000. 
D) $425 000. 
A) $30 000. 
B) $50 000. 
C) $80 000. 
D) $425 000.

Question 5

When subsequent expenditure on intangible assets are incurred,the costs are:

Accepted Answer

A) debited to the retained earnings account. 
B) transferred to a revaluation reserve account. 
C) capitalised as part of the cost of the asset. 
D) immediately expensed,rather than being capitalised. 
A) debited to the retained earnings account. 
B) transferred to a revaluation reserve account. 
C) capitalised as part of the cost of the asset. 
D) immediately expensed,rather than being capitalised.

Question 6

Which of the following statements is incorrect?

Accepted Answer

A) Intangible assets are fundamentally the same as tangible assets for recognition purposes. 
B) Financial assets such as loans and receivables are excluded from being classified as intangible assets. 
C) Separability tests whether an entity can divide an asset from other assets and transfer it to another entity. 
D) Non-physical assets cannot be recognised unless they are identifiable. 
A) Intangible assets are fundamentally the same as tangible assets for recognition purposes. 
B) Financial assets such as loans and receivables are excluded from being classified as intangible assets. 
C) Separability tests whether an entity can divide an asset from other assets and transfer it to another entity. 
D) Non-physical assets cannot be recognised unless they are identifiable.

Question 7

For an asset to be defined as an identifiable intangible,AASB 138 Intangible Assets requires that it meet which of the following criteria?
I.It arises from a contractual or legal right.
II.Its fair value must be able to be reliably measured.
III.It is separable from the entity.
IV.Its cost must be reliably measurable.

Accepted Answer

A) I or IV only 
B) I or II only 
C) II or III only 
D) I or III only 
A) I or IV only 
B) I or II only 
C) II or III only 
D) I or III only

Question 8

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date is known as the:

Accepted Answer

A) fair value. 
B) cost. 
C) net present value. 
D) realisable value. 
A) fair value. 
B) cost. 
C) net present value. 
D) realisable value.

Question 9

Which of the following statements is incorrect?

Accepted Answer

A) Intangible assets are to be derecognised when there are no expected future benefits from the asset. 
B) Amortisation of an intangible with a finite useful life does not cease when the asset becomes temporarily idle. 
C) Amortisation of an intangible with a finite useful life ceases when the asset is retired from active use. 
D) Gains or losses on disposal are calculated as the difference between the proceeds on disposal and the carrying amount at point of sale. 
A) Intangible assets are to be derecognised when there are no expected future benefits from the asset. 
B) Amortisation of an intangible with a finite useful life does not cease when the asset becomes temporarily idle. 
C) Amortisation of an intangible with a finite useful life ceases when the asset is retired from active use. 
D) Gains or losses on disposal are calculated as the difference between the proceeds on disposal and the carrying amount at point of sale.

Question 10

AASB 138 Intangible Assets,requires that which of the following items each be disclosed separately?

Accepted Answer

A) The opening balance of each intangible. 
B) The closing balance of each intangible. 
C) Any impairment losses reversed in profit or loss during the period. 
D) All amounts of intangibles acquired during the period. 
A) The opening balance of each intangible. 
B) The closing balance of each intangible. 
C) Any impairment losses reversed in profit or loss during the period. 
D) All amounts of intangibles acquired during the period.

If an intangible asset is allocated to an entity via a government grant,it can initially be recognised at fair value.

When an intangible asset is acquired by an exchange of assets,which of the following measures will need to be considered in the determination of the cost of the intangible asset?

An identifiable non-monetary asset without physical substance is known as a/an:

When subsequent expenditure on intangible assets are incurred,the costs are:

Which of the following statements is incorrect?

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date is known as the:

Which of the following statements is incorrect?

AASB 138 Intangible Assets,requires that which of the following items each be disclosed separately?

Nature and Regulation of Companies

Financing Company Operations

Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Financial Instruments

Foreign Currency Transactions and Forward Exchange Contracts

Property, Plant and Equipment

Leases

Business Combinations

Impairment of Assets

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Disclosure: Translation of Financial Statements Into a Presentation Currency

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Investments in Joint Arrangements

Insolvency and Liquidation

Filters

Exam 11: Intangible Assets

If an intangible asset is allocated to an entity via a government grant,it can initially be recognised at fair value.

When an intangible asset is acquired by an exchange of assets,which of the following measures will need to be considered in the determination of the cost of the intangible asset?

An identifiable non-monetary asset without physical substance is known as a/an:

When subsequent expenditure on intangible assets are incurred,the costs are:

Which of the following statements is incorrect?

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date is known as the:

Which of the following statements is incorrect?

AASB 138 Intangible Assets,requires that which of the following items each be disclosed separately?

Nature and Regulation of Companies

Financing Company Operations

Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Financial Instruments

Foreign Currency Transactions and Forward Exchange Contracts

Property, Plant and Equipment

Leases

Business Combinations

Impairment of Assets

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Disclosure: Translation of Financial Statements Into a Presentation Currency

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Investments in Joint Arrangements

Insolvency and Liquidation

Filters