Question 1

AASB 138 Intangibles, requires that an intangible asset with an indefinite life:

Accepted Answer

A)  be amortised across its useful life. 
B)  be amortised across a period of no greater than 10 years. 
C)  not be amortised in periods when it has been properly maintained. 
D)  not be subject to amortisation charges.

Question 2

Goodwill is distinguished from other intangible assets due to which of the following characteristic?

Accepted Answer

A)  monetary nature. 
B)  physical substance. 
C)  identifiability. 
D)  separability.

Question 3

The recognition criteria that an asset must meet before it may be recognised and presented in the financial statements includes:

Accepted Answer

A)  results from a past event. 
B)  having physical substance. 
C)  relevant to management decision making. 
D)  verifiability.

Question 4

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

Accepted Answer

A)  are monetary items. 
B)  are not controlled by the entity. 
C)  cannot be reliably measured. 
D)  are too difficult to manage.

Exam 6: Intangible Assets

AASB 138 Intangibles, requires that an intangible asset with an indefinite life:

Goodwill is distinguished from other intangible assets due to which of the following characteristic?

The recognition criteria that an asset must meet before it may be recognised and presented in the financial statements includes:

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