Question Chapter 08

under IFRS, an entity that acquires an Intangible asset may use the revaluation model for subsequent measurement only if:

• The useful life of the Intangible asset can be reliably determined

• An active market exists for the intangible asset.

• The cost of the intangible asset can be measured reliably

• The intangible asset is a monetary asset.

What are intangible assets?

• Monetary assets without physical substance

• Monetary assets with physical substance

• Non-monetary assets without physical substance

• Non-monetary assets with physical substance

If one Intangible asset is exchanged for another, the cost of the Intangible is measured at:

• Book value

• Fair value

• Present value

• Estimated value

If an intangible asset is revalued upwards, the increase in value should be credited:

• To the Income Statement under "Other Income”

• To the Income Statement under "Revaluation of Assets“

• To the Statement of Financial Position under ”Revaluation Surplus“

• To Equity under “Revaluation Surplus”

Which of the following is not a requirement to capitalize development costs under IAS 38 - Intangible Assets?

• It must be technically feasible

• The entity intends to sell the completed intangible asset

• The entity can demonstrate haw the asset will generate future economic benefits

• The commercial feasibility for the asset may be uncertain

An entity may classify an internal project’s cost as either research or development if it cannot distinguish between each phase.

 

• True

• False

Amortization charges for a period are recorded:

• Only in the income statement

• Only in the financial position

• As an exceptional item in the income statement

• In the income statement, or as part of the cost another asset (such as inventories)