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WorksheetsEBA2013 - LU2 (Intangible Assets)
Total questions: 10
Worksheet time: 5mins
An intangible asset has (i) future economic benefits and (ii) the cost of the asset can be measured reliably.
True
False
An example of intangible assets, EXCEPT
Patents and copyrights
Franchises and concessions
Trademark
Goodwill
Impairment
Almost ALL internally generated intangibles are not recognized as intangible assets because typically there are uncertainties involving the identifiability and control of the assets.
True
False
Research and development (R&D) expenditures are NOT allowed to be recognized as intangible assets.
True
False
Subject to limitation
Para 57 MFRS 138 states conditions that should be satisfied for an R&D outcome recognised as intangible assets, EXCEPT
There is a feasibility to complete the asset
There is a future economic benefit generated from the asset
The entity can measure the development expenditure reliably
R&D must be able to obtain knowledge is a requirement of asset recognition
The Clarification of Acceptable Methods of Depreciation and Amortization (Amendments to MFRS 116 and MFRS 138) clarifies the possibility of adopting revenue generated by an activity as an amortization method for intangible assets.
True
False
MFRS 138 do prescribe a maximum period of amortization but, in practice, the amortization period does not exceed five years.
True
False
Does amortization have a similar concept to depreciation?
Yes
No
Intangible assets could be subject to impairment. For intangible assets with finite life, test of impairment is performed only when there is an indication that the assets are impaired.
True
False
When an intangible assets derecognise, it should be removed from the Statement of Financial Position when they are sold or when no further future economic benefits are expected from them.
True
False
