intangible assets qp Flashcards
A company incurs costs aimed at gaining new scientific or technical knowledge
Expenditure on research shall be recognised as an expense when it is incurred. If the research phase cannot be distinguished from the development phase, all expenditure is treated as incurred in the research phase
A company separately acquires an intangible asset.
The intangible asset shall be recognised if it is probable that future economic benefits will flow to the entity, and the cost can be measured reliably. The probability recognition criterion is always considered satisfied for separately acquired intangible assets. The asset is initially measured at cost
A company exchanges an intangible asset for another non-monetary asset.
The cost of the acquired intangible asset is measured at fair value unless the exchange lacks commercial substance or the fair value of neither asset can be reliably measured. If fair value is not used, the cost is the carrying amount of the asset given up
A company acquires an intangible asset as part of a business combination.
The intangible asset is recognised separately from goodwill if it meets the definition of an intangible asset (identifiable and controlled). The cost is its fair value at the acquisition date. The probability and reliable measurement criteria are always considered satisfied
A company generates goodwill internally.
Internally generated goodwill shall not be recognised as an asset
A company applies research findings to a plan or design for a new or substantially improved product or process before commercial production.
Expenditure on the development phase can be capitalised as an intangible asset if, and only if, all of the following can be demonstrated:
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The technical feasibility of completing the asset.
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The intention to complete the asset and use or sell it.
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The ability to use or sell the asset.
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How the asset will generate probable future economic benefits.
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The availability of adequate technical, financial, and other resources to complete the development.
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The ability to measure reliably the expenditure attributable to the asset during its development
