Intangible Asset (Pre-fi)

Question 1

It is an identifiable non-monetary asset without physical substance

Answer 1

Intangible Asset

Question 2

It must be separable from other assets and must arise from any legal or contractual rights

Answer 2

Identifiability

Question 3

It means the company has the power to obtain benefit from the asset

Answer 3

Control

Question 4

These are future revenues or reduction in the future costs that can be obtained in using the asset

Answer 4

Future economic benefits

Question 5

These are primarily used in the marketing promotion of products or services (ex. trademarks,newspapers and non competition agreements)

Answer 5

Marketing-related intangible assets

Question 6

These are the result of interactions with outside parties (ex. customer lists, order or production backlogs)

Answer 6

Customer-related intangible assets

Question 7

These are involve ownership rights to plays, literary works, musical works, pictures, photographs and videos. Copy rights protect these ownership rights.

Answer 7

Artistic-related intangible assets

Question 8

These represent the value of rights that arise from contractual arrangements (ex. franchise and licensing agreements)

Answer 8

Contract-related intangible assets

Question 9

These relate to innovations or technological advances (ex. patented technology and trade secrets)

Answer 9

Technology-related intangible assets

Question 10

This type of intangible asset represents the future economic benefits arising from the other assets acquired in a business combination, which are not individually identified and separately recognized. It is often called the most intangible of the intangibles.

Answer 10

Goodwill

Question 11

This are money held and assets received in fixed or determinable amounts of money

Answer 11

Monetary assets

Question 12

In this phase, an entity cannot demonstrate that intangible asset exists and expenditures on this phase are expensed immediately

Answer 12

Research phase

Question 13

In this phase, an entity can, in some instances, identify an intangible asset and demonstrate that the asset will generate probable future economic benefits

Answer 13

Development phase

Question 14

This is derived from a right granted to the entity or person

Answer 14

Identifiable intangible assets

Question 15

This comprise goodwill and internally generated and purchased intangibles that do not have specific cost or have cost, but unreliable

Answer 15

Unidentifiable intangible assets

Question 16

Under this model, after initial recognition, an inthangible asset shall be carried at its cost less any accumulated amortization less any accumulated impairment losses

Answer 16

Cost model

Question 17

Under this model, after initial recognition, an intangible asset shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated amortization and any subsequent impairment losses

Answer 17

Revaluation model

Question 18

The depreciable amount of an intangible asset with a finite useful life shall be allocated on a systematic basis over its useful life

Answer 18

Amortization period

Question 19

This method shall reflect the pattern in which the asset’s future economic benefits are expected to be consumed by the entity

Answer 19

Amortization method

Question 20

This is not a subject to amortization but is tested for impairment at least annually, or more frequently, if there is an indication for impairment

Answer 20

Goodwill

Question 21

It is the smallest group of assets that generate an independent cash flow

Answer 21

Cash-Generating Unit

Question 22

It is the higher of the cash generating unit’s fair value less cost to sell and its value in use

Answer 22

Recoverable amount of CGU

Question 23

It is the excess of carrying value over its recoverable amount

Answer 23

Impairment loss of CGU

Question 24

On the date of derecognition, gain or loss should be recognized in profit or loss for any difference between?

Answer 24

Net disposal proceeds and carrying amount of the asset

Question 25

Cost of a separately acquired intangible asset comprises: it’s purchase price, plus any duties and non-refundable taxes, less discounts and rebates; and any directly attributable costs of preparing the asset for its intended use

Answer 25

Separate acquisition

Question 26

A company incurs costs in developing an asset without physical substance

Answer 26

Internally generated intangible asset

Question 27

The cost of that intangible asset is it fair value at the acquisition date

Answer 27

Acquisition as part of a business combination

Question 28

An intangible asset may be acquired free of charge, or for nominal consideration

Answer 28

Acquisition by way of a government grant

Question 29

It should be recognized initially at fair value

Answer 29

Acquisition by exchanges of asset

Question 30

It is an intangible asset with a finite useful life shall be assumed to be zero

Answer 30

Residual value

Question 31

It is composed of only those asset that can be attributed directly, or allocated reasonably

Answer 31

Carrying value of CGU