Question 1

Under IFRS, which of the following is a criterion that must be met for an asset to meet the definition of an intangible asset?

Question 1 options:

A	The asset must be identifiable.
B	The asset must have physical substance.
C	The asset is unlikely to generate future economic benefits.
D	The cost of the asset can be reliably measured.

Question 2

Which of the following assets is considered an intangible asset for a company that reports under IFRS?

Question 2 options:

A	An industrial laminating machine
B	A right to open a TeaStar franchise in Winnipeg
C	Computer equipment that is technologically obsolete and no longer used
D	Marketing expenses that result from radio advertising

Question 3

For an entity reporting under IFRS, which of the following statements correctly describes the recognition requirements for an intangible asset?

Question 3 options:

A	An intangible asset is recognized when its cost can be measured reliably.
B	There is a market for the entity to sell the intangible asset in the future.
C	Only assets that are separately acquired can be recognized as intangible assets.
D	An asset must meet the definition of an intangible asset to be recognized as an intangible asset.

Question 4

Fix It Right Corp. follows IFRS and had the following transactions during its year ended December 31, 2020:

• Spent $135,000 developing its brand.
• Incurred development costs of $254,000 for a new product that met all the intangible asset recognition criteria on September 30. Of the $254,000 spent, $160,000 was incurred after September 30.
• Purchased a customer list for $89,000 from a competitor that was closing its business.

What is the total cost of intangible assets that were capitalized during 2020?

Question 4 options:

A	$183,000
B	$249,000
C	$343,000
D	$384,000

Question 5

Swans Industrial Company has begun work on a new process for desalination of water to be used in its manufacturing process. The CFO is aware that costs in the research phase of the project must be expensed but does not know when the research phase ends and capitalization can occur. The company reports its financial information using IFRS. Which of the following is a criterion that must be met for the project to be in the development phase?

Question 5 options:

A	The company intends to complete the project to develop the new desalination process.
B	There is a desire by the company to use the new process.
C	The desalination process is likely to be feasible.
D	There are adequate and available resources to launch the development of the desalination process.