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Date Submitted: 01/13/2015 12:18 AM
ADVANCED FINANCIAL ACCOUNTING 260
INTANGIBLE ASSETS
QUIZ QUESTIONS
1. List two assets which would not meet the ‘identifiable’ aspect of the definition of an intangible asset. (2 Marks)
Goodwill Knowledge
2. Intangible assets acquired via a separate acquisition are always recognised. Why? (2 Marks)
In applying the recognition criteria for separately acquired assets, it is always assumed that the probability recognition criterion is met. The reason for this is that it is believed that a buyer of an asset will determine the price to be paid by taking into account the probability of the future benefits to be received.
3. How is an intangible asset acquired as part of a business combination measured for initial recognition? Why? (2 Marks)
In accordance with AASB 3 Business Combinations, if an intangible asset is acquired in a business combination, the cost of that intangible asset is its fair value at the acquisition date.
4. List two ways that fair value could be determined for intangible assets acquired as part of a business combination. (2 Marks)
1) Quoted market prices in an active market
2) Consider the outcome of recent transactions where no active market exists
5. In the research phase all expenditure on a project must be expensed. Why? (1 Mark)
As illustrated in paragraph 54 of AASB 138, No intangible asset arising from research (or from the research phase of an internal project) shall be recognised. Expenditure on research (or on the research phase of an internal project) shall be recognised as an expense when it is incurred.
6. Identify three ways in which an entity may obtain an intangible asset. (1 Mark)
Separate Acquisition
Acquisition as Part of a Business Combination
Acquisition by way of a Government Grant
7. Where an intangible asset has been separately acquired how is its cost measured? (1 Mark)
its purchase price and any directly...