Q1. . (1.5 marks)

a. IFRS requires capitalizing actual interest (with modification). What items are to be considered for capitalization? Explain.

b. On November 1, 2010, Saif Company contracted Ahmed Construction Co. to construct a building for $1,600,000 on land costing $400,000 (purchased from the contractor and included in the first payment). Saif made the following payments to the construction company during 2011.

Date	Amount $
1st Jan	500,000
1st Mar	400,000
1st Jun	350,000
1st Sep	500,000
1st Dec	250,000

Required: Compute weighted-average accumulated expenditures for 2011

Q2. A long-lived tangible asset is impaired when a company is not able to recover the assets carrying amount either through using it or by selling it. The management to identify whether the asset has impairment or no impairment conducts an impairment test.

Explain how the impairment test conducted in both situations with numerical examples. (1 Mark)

Q3. Explain the classified Intangible Assets with examples. (0.5Mark)