Intangible Assets

Question 1

What is an intangible asset

Answer 1

Identifiable non-monetary asset without physcial substance

Question 2

What does a intagible asset

Answer 2

It requires to be sold separable
Arise from legal and contractual rights

Question 3

How is intangible asset measured?

Answer 3

Measured at cost and amortised on systematic basis or impairment

Question 4

What are examples of intangible assets

Answer 4

1)Licenses
2)Patents
3)Copyrights
4)Trademarks
5)Computer software
6)Development cost

Question 5

What are internal generate intangible assets

Answer 5

These cannot be capitalised as the cost associated with these cannon be seperated from the cost of running the business

Question 6

Examples of internal Generated intangible assets

Answer 6

1_Goodwill
2.Brands
3. Mastheads
4. Publishing titles
5. Customer lists
6. Research and developments cost

Question 7

Is Research treated as intangible asset?

Answer 7

No, so expensed to the p+l

Question 8

Is Developments cost capitalised?

Answer 8

It depends if its meets the specific criteria, if not its should be expensed

Question 9

When should you capitalise an intangible asset?

Answer 9

1)Can it be valued
2) Will it provide future economic benefit
3)It it a finish product

Question 10

What is the development expenditure capitalisation criteria >

Answer 10

Probable future economic benefit
Intention to complete the project
Resources to complete
Ability to use or sell the product
Technical feasible
Expensiture can be measured reliably

Question 11

When should the development cost be capitalised

Answer 11

When all criteria’s are met