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FAR > Concepts CH 9 > Flashcards

Concepts CH 9 Flashcards

1
Q

Externally Acquired Intangible Assets (not goodwill)

A

Recorded at acquistition cost + incidentals

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2
Q

Internal Intangible assets

A

Recorded at incidentals

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3
Q

Subsequent Measurement - Finite

A

Amortize based on pattern of consumption - useful life should be re-evaluated each period

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4
Q

Subsequent Measurement - Infinite

A

No Amort test for impairment

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5
Q

Impairment Recovery Test

A

If Carry amount > UCDF

Loss = Carry Amount - FV

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6
Q

Goodwill

A

Not amortized test for impairment same time each year at report unit level

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7
Q

Goodwill Qualitative Assessemnt

A

FV < Carrying Amount

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8
Q

Quantitative 2 Steps

A

1 Compare FV of Report Unit w/ Carry Amount of Goodwill. If FV < Carry Amount go to Step 2
2 Compare implied FV of Report Unit Goodwill with carrying amount of Goodwill over implied FV

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9
Q

R&D

A

Must be expensed as incurred

  • Materials
  • Equipment and Facilities (with no other uses)
  • Personnel
  • Contract Services
  • Indirect Costs
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10
Q

Marketed Software - Expense

A

Expense cost before tech feasibility

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11
Q

Market Software - Capitalize

A

After Tech feasibility
Amortization begins after product available for gen release
Purch software with no alt use treat as internal use
Purch software with alt use capitalize at purch

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12
Q

Market software - inventory

A

Software duplication
Training Materials
Packaging

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13
Q

Software Amortization

A

Greater of

a) Capitalized cost times revenue ratio (annual soft revenue/total projected revenue)
b) straight-line amortization

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14
Q

Software balance sheet measure

A

Lower of cost of NRV

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15
Q

Internal Software - Expense

A

Cost Preliminary Project Stage Expense

Training and Maintaining also expense

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16
Q

Internal Software - Capitalize

A

Development Stage

  • External Direct Cost of Material & Services
  • Payroll Direct relate to project
  • Interest costs
17
Q

IFRS activities to be expensed

A

activities aimed at obtaining new knowledge

18
Q

Goodwill is recognized

A

Only in a business combination

19
Q

Cost of Legal Defense of Patent

A

Capitalize if successful

Expense if not

20
Q

During Year 3, the company recognized an impairment loss on goodwill. On December 31, Year 5, the company estimates that the fair value of goodwill is greater than its carrying amount.

A

The impairment loss recognized is nonreversible therefore no effect on f/s

FAR (22 decks)

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