Deck 14: Intangible Assets

Question 1

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

Answer 1

False

Question 2

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

Answer 2

False

Question 3

Under the IAS negative goodwill is recognised,

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.

Answer 3

D

Question 4

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

Question 5

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

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 6

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

Question 7

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

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.

Question 8

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

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

Question 9

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

Question 10

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

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.