If an intangible asset is acquired as a part of the business combination it's recognised at: a. Fair value b. Cost c. Carring amount d. None of the given options
Q: Which of the following assets of an acquiree may not be included when computing for the goodwill…
A: Some special considerations under IFRS 3 that can be recorded as Identifibale net assets even though…
Q: 1. IAS 36 applies to which of the following assets? (a) Inventories. (b) Financial assets. (c)…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Unless acquired under a business combination, intangible assets must be initially measured using…
A: Intangible assets are those which does not have physical substance. It includes copyright, goodwill,…
Q: Which of the following statements is true about goodwill? The intangible asset goodwill may be…
A: Goodwill is an intangible asset which appears in the asset side of entities balance sheet.
Q: If a company uses the fair value model to value investment property, changes in the fairvalue of the…
A: Under the fair value model, remeasuring of investment property is made at the end of each reporting…
Q: key characteristic for theclassification of an asset as ‘held for sale’ is that the carrying amount…
A: As per IFRS 5 a non-current asset or disposal group is classified as held for sale if its carrying…
Q: Under IFRS, an entity that acquires an intangible asset may use the revaluation model for subsequent…
A: As per IFRS on Intangible Assets, an intangible asset can be revalued only when there is an active…
Q: 1. Identifiable intangible assets are those intangible assets that: A. have been purchased by the…
A: Intangible assets are those assets which do not have physical existence.
Q: If an entity was not able to determine the fair value of both the asset received and the asset given…
A: Where the exchange of Assets have a commercial substance (sufficient cash flow can be generated in…
Q: Under what conditions is it appropriate for a businessto use the composite method of depreciation…
A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…
Q: 1. When an item of asset is transferred to and from the classification investment property, carried…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: A component of an entity when it has actually disposed of the operation and when operation meets the…
A: Answer- As per IFRS 5- Non-current Assets Held for Sale and Discontinued Operations , A…
Q: All of the following are true regarding recovery of impairments for intangible assets except а.…
A: Intangible assets are those assets which lacks physical existence and provide long term benefits to…
Q: Net book value is Select one: a. Amount of which an asset is recognized in the balance sheet after…
A: Book value of the asset is the value at which the asset is recorded in the financial statement. All…
Q: If the asset or disposal group is acquired as part of a business combination, it shall be measured…
A: Business combination is the agreement or combination between two or more than two companies in which…
Q: When a group of assets is acquired for a lump sum price, the total cost should be allocated to the…
A: As per IAS 16 Property plant and equipment, When a group of assets are acquired for a lumpsum…
Q: Which of the following is/are not capitalized as an intangible asset?
A: Step 1 As per intangible assets, in business combination we separately identify the intangible…
Q: hen a firm disposes of a capital asset, the difference between the net book value of the asset and…
A: Basic Accounting Concept Capital gain or loss on transfer of assets
Q: Question 2 Which of the following statements regarding goodwill is incorrect? An internally created…
A: The goodwill is an intangible asset, which is created with purchase of one company by the other…
Q: Which of the following statements concerning Intangible assets are TRUE? (In your answer, provide…
A: A) Goodwill can never be recognised because it is not an identifiable resource. C) Intangible assets…
Q: ntangible assets can only be measured using the revaluation model if the acquiring entity:
A: The Answer:
Q: Which of the following is an intangible asset that is not typically amortized? a. goodwill b.…
A: Intangible assets: These are long-term assets that are not physical in nature but possess value. The…
Q: With respect to goodwill related to acquisition, an impairment is a one-step process considering the…
A: Impairment Process: The Expected future benefit which can be realized from an assets are compared…
Q: Under IFRS, a company that acquires an intangible asset may use the revaluation model for subsequent…
A: IFRS Policy International Financial Reporting Standards (IFRS) refers to the common set of rules and…
Q: If depreciable equipment is sold at a gain,
A: Investing Activity It is related to all activities that include non-current assets. Some of the…
Q: 1. When reclassification is made from owner occupied property to investment property that will be…
A: Reclassification of owner occupied property to Investment property Treatment of gain or loss while…
Q: In an acquisition where there is an exchange of assets for assets, how does the ownership structure…
A: In exchange the value of net assets may increase or decrease, all depends on the fair value of the…
Q: When an intangible asset is acquired by an exchange of assets, which of the following measures will…
A: Intangible assets are those assets which we can not see or touch. These assets can only be felt.
Q: All of the following statements are true, except: When property is acquired in exchange for…
A: The property, plant, and equipment are recorded as a tangible asset of the company. it is acquired…
Q: What is the requirement with respect to the allocation of the cost of a business acquisition? a.…
A: Acquisition method is used in all types of business acquisition.
Q: Which of the following statements in incorrect? a. Donations of PPE should be recorded at the…
A: Following is the answer to the given question
Q: Which of the following are criteria for determining whether to record an asset as a fixed asset?…
A: Fixed asset is defined as anything which is utilized for more than single accounting period and…
Q: Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration…
A: solution If the cash paid at the time of acquisition is used to measure an asset, then it is called…
Q: a. to determine the ACA for the joining entity's asset Incorrect b. to spread the ACA over the…
A: TCSA (Tax collected at Source of Assets) and ACA (Affordable Care Act) are two tax…
Q: The price that would be received to sell an asset or paid to transfer a liability in an orderly sale…
A: In accountancy, an asset can be defined as a business item used for the purpose of running business.…
Q: The cost of property acquired by direct cash purchase includes the cash paid and: A. the implied…
A: Property is a type of fixed assets that is being taken or acquired by the business. These can be…
Q: which of the following statements in relation to the cost of the asset is true? A. all of the…
A: The balance sheet represents the financial position of the business with assets, liabilities on a…
Q: The cost of a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange…
A: Fair Value:Fair value is the price settled and agreed by both buyer and seller, each of them acting…
Q: Which statement below regarding the accounting for intangible assets is correct O Patents are…
A: Analysis of opinions 1. Patents are amortized over the shorter of useful life or legal life…
Q: acquisition where there is an exchange of assets for assets, how does the ownership structure of the…
A: Acquiree Entity is the entity whose business is taken over by other entity.
Q: which of the following are fixed assets? Financial assets at fair value through profit or loss…
A: Fixed assets are assets acquired for the business for a longer period. This is an important section…
Q: A transfer from investment property carried at fair value to owner-occupied property shall be…
A: Investments: Investment is defined as an allocation of money with the prospect of some future…
Q: In an acquisition of assets, the acquirer must give up which of the following? A. Other Assets B.…
A: In business combination, acquirer is the company who invested in another company or purchase another…
Q: What is the appropriate accounting treatment for the value assigned to in-process research and…
A: Business combination: Business combination refers to the combining of one or more business…
Q: Evaluate the following statements: S1. The borrowing cost is capitalized when the entity undertakes…
A: The answer for the multiple choice question and relevant explanation are presented hereunder :…
Q: Which of the following statements is correct? O Intangible assets used in the operation of a…
A: An intangible asset is an asset that is not physical in nature. Goodwill , brand recognition and…
If an intangible asset is acquired as a part of the business combination it's recognised at:
a. Fair value
b. Cost
c. Carring amount
d. None of the given options
Step by step
Solved in 2 steps
- The cost of intangible asset acquired in business combination is recognized by entity in its book at: a. Cost of acquisition date b. Either at cost or fair value at acquisition date c. Fair value at acquisition date d. Fair value at end of the reporting periodIn a business combination, goodwill is defined as the excess of acquisition cost over the a. fair value of assets acquired. b. fair value of assets acquired less the liabilities assumed. c. net book value of assets acquired. d. book value of assets acquired less the liabilities assumed.Which of the following is/are true regarding goodwill achieved through acquisition as part of business combination? Where the acquirer was able to purchase the business at a discount, the excess of the market capitalization over the consideration transferred will be recognized in profit or loss. The acquirer shall recognize goodwill as of the acquisition date measured as the excess of the aggregate of the consideration transferred over the net of the fair values of all the assets acquired and the liabilities assumed Group of answer choices Both statements are true. None of these statements are true. 2 only. 1 only.
- What is the requirement with respect to the allocation of the cost of a business acquisition? a. Cost to be allocated based on carrying amount. b. Cost to be allocated based on original cost c. Cost to be allocated based on fair value. d. None of theseif the value implied by the purchase price of an acquired company exceeds the fair values of the identifiable net assets, the excess should be a. allocated to reduce any previously recorded goodwill and classify any remainder as an ordinary gain b. allocated to reduce current and longlived assets c. allocated to gain on acquisition d. allocated to goodwillf the value implied by the purchase price of an acquired company exceeds the fair values of identifiable net assets, the excess should be A. Allocated to reduce long-lived assets B. Allocated to reduce current and long-lived assets C. Allocated to reduce any previously recorded goodwill and classify any remainder as an ordinary gain. D. Allocated goodwill
- The identifiable assets acquired and liabilities assumed in a business combination are generally measured at: a. Acquisition-date fair values b. Previous carrying amounts c. Fair value less cost to sell d. CostIf the value implied by the purchase price of an acquired company exceeds the fair values of identifiable net assets, the excess should be A. Allocated to reduce current and long-lived assetsB. Allocated to reduce long-lived assetsC. Allocated to reduce any previously recorded goodwill and classify any remainder as an ordinary gain.D. Allocated goodwill1. When an item of asset is transferred to and from the classification investment property, carried using the cost model, the measurement basis at the date of transfer is the a. original cost. b. fair value. c. carrying amount. d. recoverable amount.2. What could be a valid reason for transfers from investment property to property, plant and equipment? a. When there is a change in use b. based on the accountant's discretion c. When the entity adopts the fair value model d. when there is change in asset's life3. An entity has an investment property that is held for rental income. The entity uses the fair value model for reporting the investment property. Which of the following statement is true? a. changes in fair value are reported in profit or loss in the current period b. changes in fair value are reported as an extraordinary gain c. changes in fair value are reported in other comprehensive income for the period d. changes in fair value are…
- Under what conditions is it appropriate for a businessto use the composite method of depreciation for itsplant assets? What are the advantages and disadvantagesof this method?The cost of a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange has commercial substance is usually recorded at A) either the fair value of the asset given up or the asset received, whichever one results in the largest gain (smallest loss) to the company. B) the fair value of the asset received if it is equally reliable as the fair value of the asset given up. C) the fair value of the asset given up, and a gain or loss is recognized. D) the fair value of the asset given up, and a gain but not a loss may be recognized.1. When reclassification is made from owner occupied property to investment property that will be carried at fair value, any excess of the fair value over the carrying amount at the date of transfer is a. ignored. b. recognized as a gain in profit or loss, c. credited to asset revaluation surplus. d. recorded as a credit to a liability account2. Which of the following are valid statements regarding measurement of investment property? I. The best evidence of fair value is current price in an active market for similar property in the same location and condition.II. When items of investment property are measured at fair values, any movement in fair value is credited to other comprehensive income under the heading revaluation surplus.III. An entity shall continue to measure an investment property at fair value until its disposal if it has previously valued the property at fair value.IV. Transaction costs directly attributable to acquisition of investment property are capitalized as…
