Intangible Assets Quiz Questions

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)

2. Intangible assets acquired via a separate acquisition are always recognised. Why? (2 Marks)

3. How is an intangible asset acquired as part of a business combination measured for initial recognition? Why? (2 Marks)

4. List two ways that fair value could be determined for intangible assets acquired as part of a business combination. (2 Marks)

5. In the research phase all expenditure on a project must be expensed. Why? (1 Mark)

6. Identify three ways in which an entity may obtain an intangible asset. (1 Mark)

7. Where an intangible asset has been separately acquired how is its cost measured? (1 Mark)

8. In what circumstances could an in-process development project be recognised as an intangible asset? (2 Marks)

9. Why does IAS 38, paragraph 63 forbid the recognition of certain internally generated intangible assets? (2 Marks)

10. Where an internally generated intangible asset is recognised by an entity how is its cost measured? (2 Marks)

11. Why does the accounting standard IAS 38 contend that an active market cannot exist for brands, newspaper mastheads, music and film publishing rights and trademarks? (1 Mark)

12. List two examples of activities which would be carried out in the development phase of an internal project. (2 Marks)

13. What is the revaluation model of accounting for intangible assets and when can it be adopted? (2 Marks)

14. When can an entity regard an intangible asset as having an indefinite useful life? (1 Mark)

15. List in detail two factors which an entity would consider in determining the useful life of an intangible asset. (2 Marks)

16. Identify one circumstance in which the residual value of an intangible asset with a finite useful life may be more than zero. (1 Mark)

17. What is the key...