IAS 38

Question 1

Intangible asset recognition criteria (identifiable)

Answer 1

The asset is identifiable

Question 2

Intangible asset recognition criteria (control)

Answer 2

The asset is controlled by entity

Question 3

Intangible asset recognition criteria (substance)

Answer 3

Has no physical substance

Question 4

Intangible asset recognition criteria (measured)

Answer 4

Cost of asset can be emasured reliably

Question 5

What is an identifiable asset (separable)

Answer 5

It is capable of sold, transferred, licensed, rented or exchanged

Question 6

What is an identifiable asset (contractual)

Answer 6

Arises from contractual of other legal rights

Question 7

Initial recognition of intangible asset?

Answer 7

At cost

Question 8

Subsequent recognition of cost model?

Answer 8

Cost - accumulated amortisation - impairment

Question 9

Subsequent recognition of revaluation model?

Answer 9

FV - accumulated amortisation - impairment

Question 10

What is finite useful life amortisation?

Answer 10

Amortised on a systematic basis over that life. Has zero residual value

Question 11

What is indefinite useful life amortisation?

Answer 11

No foreseeable limit to generate net cash inflows
Subject to impairment review only

Question 12

What is research?

Answer 12

Original and planned investigation undertaken with goal of gaining new scientific or technical knowledge

Question 13

What happens with research?

Answer 13

It cannot be recognised as an intaigble asset. Recognsied as an expense in SPL

Question 14

What is development?

Answer 14

Application of resarch to plan/design products before start of commercial production or use

Question 15

When development recognsied as intangible asset?

Answer 15

Ptobable future economic benefits
Intention to complete and use/sell asset
Resources available to complete asset
Abiltiy to use/sell asset
Technical feasibility to complete asset
Expenditure measured reliably

Question 16

What if development not recognised as an intangible asset?

Answer 16

Recognise as an expense in SPL

Question 17

What is specifically not recognised as intangible assets?

Answer 17

Internally generated brands
Mastheads
Publishing titles
Customer lists

Question 18

is internally generated goodwill recognised?

Answer 18

No

Question 19

What are monetary assets?

Answer 19

Money held and assets to be received in fixed or indeterminable amounts of money

Question 20

Examples of monetary assets/

Answer 20

Cash and receivables

Question 21

Internally generated intangible assets compose of?

Answer 21

Research and development

Question 22

Expenditure that is not recognised examples? (Are expenses)

Answer 22

Start-up
Training
Advertising
Promotional
Relocation
Reorganisation

Question 23

What is an active market?

Answer 23

Market in which transactions take place with sufficient frequency and volume to provide pricing info on an ongonig basis

Question 24

Uncommon example of active market for intangible assets (use revaluation model)

Answer 24

Freely transferable taxi licences
Nut production quotas

Question 25

Finite useful life example?

Answer 25

Amortise asset on systematic basis over its useful life
Recognise amortisation in SPL
Residual value = 0
Amortisation begins when asset available for use
Review at each year end

Question 26

Indefinite useful life example?

Answer 26

Don’t amortise asset
Conduct impairment review annually and where possible impairment
Review useful life at least annually