Fixed assets

Question 1

Intagible assets with indefinite lives

Answer 1

Should not be amortized

Question 2

R&D costs must be expense me in the period incurred

Answer 2

So only patent costs would be included

Question 3

Ifrs requires investment property

Answer 3

Cost model or fair value method

Ifrs only classifies investment property as land under a finance lease, appreciation, undetermined future use, vacant building held for lease.

Question 4

Interest costs

Answer 4

Can be captilized if incurred during the construction period

Question 5

Good will should be

Answer 5

At cost and tested for impairment every three years

Question 6

Ifrs differs from gaap development costs by

Answer 6

Allowing them to be captilized if six criteria are met

Question 7

Impairment loss

Answer 7

Calculated by seeing if book value is higher than expected future cash flows, if so then compare to book value - fair value