Intangibles

Question 1

In IFRS, intangibles are valued using

Answer 1

cost model
and
revaluation model

originally recorded at c ost
then
choose cost model or revaluation model

EXCLUDING GOODWILL - acquired in business combination - newly identifiable intangibles are recorded at fv

Question 2

Criteria for intangibles in IFRS

Answer 2

it is based on contractual or legal rights

it can be separated from the entity, sold, transferred, licensed, rented or exchanged

Question 3

Goodwill in IFRS

Answer 3

DO NOT RECOGNIZE INTERNALLY DEVELOPED GOODWILL

Question 4

Research expenditures

Answer 4

expensed as incurred

Question 5

Development expenses

Answer 5

should meet ALL criteria to be capitalized

1, technological feasibility achieved

2. entity intends to complete, use and sell the asset
3. entity has ability to use or sell the asset
4. entity understands how the asset will generate probable future benefits
5. technical, financial and other resources are available to complete development of the asset
6. entity has the ability to reliably measure the expenditures

Question 6

Revaluation model in IFRS for intangibles

Answer 6

FV in active market required
ONLY INTANGIBLES TRADED IN ACTIVE MARKET PRICES ARE REVALUED USING REVALUATION M ODEL

Gains and losses to OCI

Question 7

Amortization - life used

Answer 7

Indefinite - do not amortize

Finite - over useful life

Question 8

In IFRS, amortization of intangibles with indefinite lives

Answer 8

DO NOT AMORTIZE

test for impairment annually at reporting date