F7- TEST 2

1. Is the following statement true or false, according to IAS 38 Intangible assets? “Expenditure during the research phase of a project may sometimes be capitalised as an intangible asset.”

• T

• F

2. Is the following statement true or false, according to IAS 38 Intangible assets? “Expenditure during the development phase of a project may sometimes be capitalised as an intangible asset.”

• T

• F

3. Is the following statement true or false, according to IAS 38 Intangible assets? “Intangible assets cannot be treated as having an indefinite useful life.”

• T

• F

4. Is the following statement true or false, according to IAS 38 Intangible assets? “Intangible assets with a finite useful life should be measured at cost and tested annually for impairment.”

• T

• F

5. Under IAS 36 Impairment of assets is the following statement relating to an active market true or false? ”Willing buyers and sellers are usually found.”

• T

• F

6. Under IAS 36 Impairment of assets is the following statement relating to an active market true or false? “Prices are available to the public.”

• T

• F

7. Is the following statement true or false in respect of a lessee accounting for a lease, according to IFRS 16 Leases? “Any initial direct costs incurred by a lessee are added to the amount of the liability recognised in the statement of financial position.”

• T

• F

8. Is the following statement true or false in respect of a lessee accounting for a lease, according to IFRS 16 Leases? “Any initial direct costs incurred by a lessee are added to the amount of the asset recognised in the statement of financial position.”

• T

• F

9. Whether the following statement is TRUE or FALSE in accordance with IAS 40 Investment Property? Transfer to or from investment property should only be made when there is a change in their use

• T

• F

10. Whether the following statement is TRUE or FALSE in accordance with IAS 40 Investment Property ? Transfer from investment property to an IAS 16 property must be made at the FV of the IP at the date of the transfer

• T

• F