Please answer 1-3 PROBLEM 1: MULTIPLE CHOICE1. According to PAS 38, intangible assets are measured asfollows:Initial measurementSubsequent measurementfair valuea. costb. costC. costd. fair valuecost model or revaluation modelcost model or fair value modelcost model or revaluation model2. According to PAS 38, research and development costsincurred in self-generating an intangible asset are recognizedas follows:Research costsa. expensedb. capitalizedc. expensedd. expensedDevelopment costsexpensedcapitalizedcapitalizedexpensed, but may be capitalizedin some circumstances3. According to PAS 38, which of the following intangible assetsare not subsequently amortized?a. internally generated intangible assetsb. intangible assets that were impairedc. intangible assets measured under the revaluation modeld. intangible assets with indefinite useful lifee. all intangible assets are amortized

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PROBLEM 1: MULTIPLE CHOICE 1. According to PAS 38, intangible assets are measured as follows: Initial measurement Subsequent measurement fair value a. cost b. cost c. cost d. fair value cost model or revaluation model cost model or fair value model cost model or revaluation model

PROBLEM 1: MULTIPLE CHOICE 1. According to PAS 38, intangible assets are measured as follows: Initial measurement Subsequent measurement fair value a. cost b. cost c. cost d. fair value cost model or revaluation model cost model or fair value model cost model or revaluation model

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.1KTQ

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Which statement is INCORRECT about subsequent measurement of intangible assets? Q7 Select one: a. When using the cost model an entity should estimate the estimated useful life as well as the estimated residual value if the asset is determined to have an indefinite useful life b. When using the cost model an entity should estimate the estimated useful life as well as the estimated residual value if the asset is determined to have a definite useful life. c. The same model chosen by an entity should be used for all intangible assets in the same class. d. Intangible assets may be measured using either the cost model or the revalued cost model.
Why is depreciation expense recognized? Select one: a. To provide a better estimate of the market value of the depreciated assets. b. So that the balance sheet value of plant assets will more accurately reflect the replacement cost of the assets. c. To ensure that cash will be available at the end of the assets' useful life in order to replace it. d. To match the cost of the asset against the revenue using a reasonable allocation. method. Save AnswersNext
For entities that report using IFRS, how are exploration and evaluation assets subsequently measured? Question 18 options: a) Using the cost or revaluation model. b) Using the cost model or fair value model. c) Using the cost model. d) Using the cost model or depreciation model.
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 correct? Question 1 options: 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
(a) Provide a definition of the deprival value of an asset. (b) For a particular asset, suppose the three bases of valuation relevant to the calculation of its deprival value are (in thousands of pounds): £12, £10 and £8. Construct a matrix of columns and rows showing all the possible alternative situ- ations and, in each case, indicate the appropriate deprival value. (c) Justify the use of deprival value as a method of asset valuation, using the matrix in (b) above to illustrate your answer. ACCA Level 2, The Regulatory Framework of Accounting, December 1988
Q12 Which of the following is correct about the initial measurement of intangible asset? Select one: a. The physical or tangible assets that were used as part of the development of the intangible asset should also be included in the cost. b. Research expenditure should also be included in the cost of the intangible asset if it was developed internally. c. An intangible asset should be recorded at cost which is the sum of expenditure incurred until the date that the asset first met the recognition criteria of an intangible asset. d. When an intangible asset is acquired in exchange of another asset, it should be recorded at its fair value at the date of acquisition.
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.
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.…
Which of the following costs incurred internally to create an intangible asset is generallyexpensed? a. Research and development costs.b. Filing costs.c. Legal costs.d. All of the above.
Which of the following statements is/are FALSE: I. Following the acquisition of an item of property, plant and equipment, subsequent expenditure for this item that will extend the asset’s useful life and increase the asset’s capacity is capitalised. II. Investment property does not get depreciated, unless it is measured at cost. III. In the statement of comprehensive income, costs can be analysed according to function or nature. Costs analysed according to function are classified into the following categories: distribution & selling costs; administrative expenses; other operating expenses (or income). IV. Because of the prudence convention, inventories are expensed in the income statement as cost of goods sold when they are sold, and not when they are bought in by the business and paid for. V. A complete set of financial statements consists of the statement of financial position, the statement of comprehensive income, the statement of changes in equity and the statement of…
Which one of the following internally-generated items may be eligible for capitalization as intangible assets in accordance with IAS 38 Intangible Assets? (Ignore business combinations.) Select one: a. Goodwill b. A pre-production prototype c. The cost of researching new material d. A customer list