WorksheetsIntangible Assets Quiz
Total questions: 20
Worksheet time: 10mins
Which of the following is a characteristic of an intangible asset under IAS 38?
Physical existence
Identifiability
Tangibility
Historical cost
Goodwill arising from the acquisition of a subsidiary is:
Amortized over its useful life
Immediately written off to profit or loss
Tested annually for impairment
Treated as a contingent liability
Development costs can be capitalized when:
The project has started
Technical feasibility has been demonstrated
Costs exceed $100,000
Revenue has been generated
Which of the following is NOT a requirement for the recognition of an intangible asset?
Probable future economic benefits
Reliable measurement of cost
Physical presence
Control over the resource
An example of an internally generated intangible asset is:
Patent purchased from another company
Brand created through advertising
Software developed in-house
Franchise license acquired
Under IAS 38, an intangible asset with an indefinite useful life:
Is amortized over 10 years
Is not amortized but tested annually for impairment
Is written off immediately
Must be revalued annually
Which of the following costs should be expensed as incurred?
Research costs
Development costs post-feasibility
Legal costs for patent registration
Purchase of a trademark
A company acquires a license for $500,000 with a useful life of 5 years. The annual amortization expense is:
$50,000
$100,000
$25,000
$200,000
Impairment of an intangible asset occurs when:
Its market value increases
Its carrying amount exceeds its recoverable amount
Amortization expense decreases
Historical cost changes
Which of the following is a valid example of an intangible asset?
Land
Machinery
Copyright
Inventory
An entity develops a new software program for internal use. The costs incurred during the research phase should be:
Capitalized
Expensed as incurred
Deferred until completion
Treated as goodwill
Which of the following statements about amortization of intangible assets is TRUE?
All intangible assets must be amortized
Amortization is only applied to assets with finite useful lives
Indefinite-life intangibles are amortized over 20 years
Amortization expense is calculated using fair value
A patent with a legal life of 20 years is expected to generate economic benefits for 12 years. Its useful life is:
12 years
20 years
15 years
Indefinite
Which of the following is a condition for capitalizing development costs under IAS 38?
Revenue generation
Completion of the project
Demonstration of technical feasibility
Marketing of the product
If an intangible asset is revalued, subsequent increases in its fair value are:
Recognized in profit or loss
Credited to a revaluation surplus
Offset against previous impairments
Ignored until disposal
An acquired brand name is classified as:
A tangible asset
An intangible asset
A contingent liability
An expense
Under IAS 38, the useful life of an intangible asset should be:
Indefinite unless proven otherwise
Based on the asset’s legal life
The shorter of legal or economic life
10 years by default
An intangible asset is derecognized when:
It is fully amortized
It is disposed of or no future benefits are expected
Its market value decreases
A revaluation is performed
Which of the following is an indicator of impairment for an intangible asset?
Increase in cash flow projections
Change in market interest rates
Obsolescence of the asset
Increased demand for the asset
The carrying amount of an intangible asset is defined as:
Its fair value
Its original cost
Its cost less accumulated amortization and impairment losses
Its recoverable amount
