Question 1

Goodwill is covered by IFRS3 because it is an identifiable non-monetary asset.

Accepted Answer

A) True 
 B)False  False

Question 2

Inherent goodwill exists in all businesses but is impossible to value.

Accepted Answer

A) True 
 B)False  True

Question 3

There is now complete harmonisation between all standards when dealing with goodwill on acquisition.

Accepted Answer

A) True 
 B)False  False

Question 4

Under US GAAP development expenditure should always be expensed with exception of which products?

Accepted Answer

A) pharmaceutical 
B) computer software 
C) motion pictures 
D) literary works 
A) pharmaceutical 
B) computer software 
C) motion pictures 
D) literary works

Question 5

There is no connection between impairment and the useful life of the asset.

Accepted Answer

A) True 
 B)False

Question 6

For IAS38 which of the following is NOT required for development expenditure to lead to an intangible asset?

Accepted Answer

A) technical feasibility of completing saleable output. 
B) the intention to complete saleable output. 
C) the ability to sell the saleable output. 
D) existing customers for the saleable output. 
A) technical feasibility of completing saleable output. 
B) the intention to complete saleable output. 
C) the ability to sell the saleable output. 
D) existing customers for the saleable output.

Question 7

Under the IAS negative goodwill is recognised,

Accepted Answer

A) in the balance sheet as a reduction in the aggregate figure for goodwill 
B) in the balance sheet as a separate line under goodwill. 
C) in the balance sheet as a reduction in the revenue reserves. 
D) in the profit & loss account. 
A) in the balance sheet as a reduction in the aggregate figure for goodwill 
B) in the balance sheet as a separate line under goodwill. 
C) in the balance sheet as a reduction in the revenue reserves. 
D) in the profit & loss account.

Question 8

Under IAS38 the measurement of intangible assets subsequent to initial recognition must be measured by;

Accepted Answer

A) the cost model 
B) the revaluation model 
C) either the cost model or the revaluation model. 
D) the same basis used when it was acquired. 
A) the cost model 
B) the revaluation model 
C) either the cost model or the revaluation model. 
D) the same basis used when it was acquired.

Question 9

Under IAS 38 there will rarely be sufficient justification for amortisation to be calculated by any method other than the declining balance method.

Accepted Answer

A) True 
 B)False

Question 10

When deciding the useful life of an intangible asset,which of the following is NOT a factor to be considered.

Accepted Answer

A) expected action of competitors. 
B) the likely resale value. 
C) the stability of the industry in which that asset operates. 
D) typical product life cycles for the asset. 
A) expected action of competitors. 
B) the likely resale value. 
C) the stability of the industry in which that asset operates. 
D) typical product life cycles for the asset.

Exam 14: Intangible Assets

Goodwill is covered by IFRS3 because it is an identifiable non-monetary asset.

Inherent goodwill exists in all businesses but is impossible to value.

There is now complete harmonisation between all standards when dealing with goodwill on acquisition.

Under US GAAP development expenditure should always be expensed with exception of which products?

There is no connection between impairment and the useful life of the asset.

For IAS38 which of the following is NOT required for development expenditure to lead to an intangible asset?

Under the IAS negative goodwill is recognised,

Under IAS38 the measurement of intangible assets subsequent to initial recognition must be measured by;

Under IAS 38 there will rarely be sufficient justification for amortisation to be calculated by any method other than the declining balance method.

When deciding the useful life of an intangible asset,which of the following is NOT a factor to be considered.

Basics of Financial Reporting

International Accounting Differences

The Process of Harmonization

Economic Valuation Concepts

Current Entry Value

Current Exit Value and Mixed Values

Current Purchasing Power Accounting

Fair Values

Accounting Theory and Conceptual Frameworks

Structure of Published Financial Statements

Corporate Governance, corporate Social Responsibility and Ethics

Basics of Interpretation of Financial Statements

Fixed Non-Currenttangible Assets

Impairment and Disposal of Assets

Leases

Inventories and Construction Contracts

Accounting for Financial Instruments

Revenue

Provisions, contingent Liabilities and Contingent Assets

Income Taxes

Employee Benefits

Changing Prices and Hyperinflationary Economies

Statements of Cash Flows

Disclosure Issues

Business Combinations

Consolidated Financial Statements

Alternative Concepts on Consolidation and Business Combinations

Accounting for Associates, joint Arrangements and Related Party Disclosures

Foreign Currency Translation

Interpretation of Financial Statements

Techniques of Financial Analysis

Filters