Chap 17

Question 1

can research expesne be capitalized

Answer 1

No they cannot be, the are expensed in the income statement as they are incurred.
However they can be capitalized if the reaserch is done on behlaf of a customer and where future income is expected.

Question 2

can development expenditure be capitalised

Answer 2

Yes, as they fall with ALL of the PIRATE conditions, ALL OF THEM .

Question 3

Are internally generated goodwill recorded

Answer 3

no, unless there is consoloidation and the parent is willing to pay for it and the fair value of the instagible asset can be measured realibaliy and a fair value can be put to it.

Question 4

Revaluation model for intagibles can only be used if there is an active market

Answer 4

Ye = (not fully sure tho)

Question 5

FOR IAS 40 investment properties , the two methods of valuation are cost ,and fair value method, does the fiar value method charge depreciatoin

Answer 5

No it does not charge dep, since as the investment property is not used by the firm in daily operation and thus does not depreciate.

Question 6

How will chnages in accounting policies be accounted for

Answer 6

retospectively

Question 7

how will changes in accounting estimates be accounted for

Answer 7

prospectively