Under IFRS, an entity that acquires an intangible asset may use the revaluation model for subsequent measurement only if 6 Multiple Choice The useful life of the Intangible asset can be reliably determined. An active market exists for the Intangible asset. O o The cost of the Intangible asset can be measured reliably. U The Intangible asset has a finite life. Which of the following is a criterion that must be met in order for an item to be recognized as an intangible asset? 7 Multiple Choice The item's fair value can be measured reliably. The item is part of the entity's activities aimed at gaining new scientific or technical knowledge. The item is expected to be used in the production or supply of goods or services. O a The item is Identifiable and lacks physical substance. An entity incurs the following costs in connection with the purchase of a trademark: 00 Purchase price of the trademark Nonrefundable value added tax paid on the purchase of the trademark Training sales department staff on the use of the trademark Research expenditures incurred prior to the purchase of the trademark Legal fees to register the trademark Salaries of personnel who negotiated the purchase of the trademark during the period of negotiation $ 80,000 4,000 2,000 15,000 8,000 10,000 Assuming that the trademark meets the criteria for recognition as an intangible asset, at what amount should the trademark be initially measured? Multiple Choice O $84,000 o $92,000 $104,000 O O $119,000 Which of the following best describes the accounting for goodwill subsequent to initial recognition? 9 Multiple Choice Goodwill is amortized over its expected useful life, not to exceed 20 years. O Goodwill is tested for Impalrment whenever Impalrment Indicators are present. Goodwill is tested for Impalrment on an annual basis. o Goodwill is revalued using a revaluation model. 10 Changsha Corporation purchased an asset during the fourth quarter of the current fiscal year. It is now the end of the fiscal year, and the asset's fair value exceeds its historical cost. In certain circumstances, IFRS allows or requires Changsha to carry the asset at fair value in its year-end balance sheet. In which of the following scenarios might Changsha carry the asset at fair value? 1. The asset is a new home office that Changsha occupied immediately after the purchase. II. The asset is a broadcasting license with an indefinite useful life. III. The asset is an office park that is being rented to a tenant. IV. The asset is 100 hectares of young trees that will eventually be turned into wood products. V. The asset is a vineyard consisting of mature grapevines. Multiple Choice Scenarios I, II, and IV. Scenarlos III, IV, and V. O Scenarios I, III, IV, and V. O All scenarios are correct