According to IAS 38 Intangible Assets, which of the following conditions would preclude any part of the development expenditure from being capitalized as an intangible asset? A The development is incomplete B The benefits flowing from the completed development are expected to be at least equal to its cost C Funds are unlikely to be available to complete the development D The development is expected to give rise to more than one product

According to IAS 38 Intangible Assets, which of the following conditions would preclude any part of the development expenditure from being capitalized as an intangible asset? A The development is incomplete B The benefits flowing from the completed development are expected to be at least equal to its cost C Funds are unlikely to be available to complete the development D The development is expected to give rise to more than one product

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 2QE

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Under IFRS, research must be expensed but some development expenditures may be capitalized. To capitalize development expenditures, firms must demonstrate several factors that include all of the following except: Multiple Choice technical feasibility. length of time the intangible asset is expected to provide benefits. ability to use or sell the asset. how the intangible asset will generate probable future economic benefits.
Which of the following statements relating to intangible assets is true?A All intangible assets must be carried at amortised cost or at an impaired amount, they cannotbe revalued upwardsB The development of a new process which is not expected to increase sales revenues may stillbe recognized as an intangible assetC Expenditure on the prototype of a new engine cannot be classified as an intangible assetbecause the prototype has been assembled and had physical substanceD Impairment losses for a cash-generating unit are first applied to intangible assets beforebeing applied to tangible assets
Included in the requirements for an intangible asset arising from development (or from the development phase of an internal project) to be recognized, are the following except: multiple choice the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset the technical feasibility of completing the intangible asset so that it will be available for use or sale the legal right to deter others from using the intangible asset its ability to use or sell the intangible asset
21. Under IFRS, research must be expensed but some development expenditures may be capitalized. To capitalize development expenditures, firms must demonstrate several factors that include all of the following except: Multiple Choice technical feasibility. ability to use or sell the asset. how the intangible asset will generate probable future economic benefits. length of time the intangible asset is expected to provide benefits.
Under IFRS, a company that acquires an intangible asset may use the revaluation model for subsequent measurement only if a. The useful life of the intangible asset can be readily determined. b. An active market exists for the intangible asset. c. The cost of the intangible asset can be measured reliably. d. The intangible asset is a monetary asset.
Indicate whether each of the following statements is true or false. If an intangible asset has its fair value determined in an active market, IFRS permits the use of the revaluation model. Answer If an intangible asset has an indefinite life, no amortization is recorded and no test for impairment is required. Answer When dealing with internally developed intangibles, once the asset is ready for its intended use, any subsequent costs are capitalized.
IFRS allows a corporation to utilize the revaluation model for future assessment only if the useful life of the intangible asset can easily be established. As a result, there is a healthy intangible asset market. c. The intangible asset's cost can be accurately calculated. It is a financial asset when an intangible asset is a monetary one.
According to PAS 38, which of the following may be recognized as cost of intangible asset?a. Research costs incurred in self-generating an intangible assetb. Costs of an internally generated customer listsc. Purchase cost of an externally acquired publishing titled. Abnormal amount of wasted labor in self-generating an intangible asset Which of the following statements is correct?a. Some intangible assets have physical substance.b. Intangible assets are always classified as noncurrent assets even in cases where they are part of a disposal group.c. The process of recording the expiration of the economic benefits of an intangible asset is called depletion.d. Intangible assets can be obtained in one of two ways – external acquisition or internal development. Which of the following statements is true?a. The capitalizable costs of patents are legal fees and other registration costs.b. An identifiable tangible asset developed internally is never recognized in the accounts as an asset.c.…
Research and development is an internally developed intangible asset that should be: capitalized and amortized over its finite life. capitalized and reviewed for impairment over its indefinite life. expensed as incurred. treated differently from any of these choices.
An entity that acquires an intangible asset may use the revaluation modelfor subsequent measurement only if A. The useful life of the intangible asset can be reliably determined.B. An active market exists for the intangible asset.C. The cost of the intangible asset can be measured reliably.D. The intangible asset is a monetary asset.
Which statement is correct regarding the treatment of research costs in accordance with IAS 38 intangible assets? Select one alternative: Research costs may be deferred if costs can be measured reliably. Research costs may not be deferred unless it is almost certain that the project they are applied to will bring future economic benefits and costs can be measured reliably. Research costs may not be recorded as an intangible asset and thus the cost is expensed in the period it is incurred. Research costs can be deferred (recorded as an asset) when it is probable that the project they are applied to will bring future economic benefits.
Which of the following statements is true regarding the amortization of intangible assets? a. Intangible assets with a limited useful life are not amortized.b. The service life of an intangible asset is always equal to its legal life.c. The expected residual value of most intangible assets is zero.d. In recording amortization, Accumulated Amortization is always credited.