What is required with respect to accounting for goodwill?

A. Goodwill should be amortized over a five year period.

B. Goodwill should be recorded and periodically evaluated for impairment.

C. Goodwill should be amortized over the expected useful life.

D. Goodwill should be recorded and never adjusted.

Which of the following is not a method of computing goodwill?

A. Capitalize excess earnings.

B. Capitalize total average earnings and subtract the fair value of net assets.

C. Discount the excess earnings for a limited number of years.

D. All of these are methods of computing goodwill.

Once recognized, intangible assets can be carried at

A. Revalued amount less accumulated amortization

B. Cost less accumulated amortization and impairment losses

C. Cost less accumulated amortization

D. Cost plus a notional increase in fair value since the intangible asset is acquired

The cost of purchasing patent rights for a product that might otherwise have seriously competed with one of the purchaser's patented products should be

A. Amortized over the remaining estimated life of the original patent covering the product whose market would have been impaired by competition from the newly patented product.

B. Added to factory overhead and allocated to production of the purchaser's product.

C. Amortized over the legal life of the purchased patent.

D. Charged to expense in the period of purchase.

The major problem of accounting for purchased goodwill is

A. determining the fair value of identifiable intangible assets acquired in a business combination.

B. distinguishing it from internally generated goodwill.

C. estimating the useful life over which to charge amortisation.

D. determining whether it has a finite useful life.

An intangible asset shall be recognized if

I.It is probable that future economic benefits attributable to the asset will flow to the entity

II.The cost of the intangible asset can be measured reliably

A. Neither I nor II

B. Both I and II

C. II only

D. I only

A patent should be amortised over

A. twenty years.

B. its useful life or twenty years, whichever is longer.

C. its useful life.

D. its useful life or twenty years, whichever is shorter.

An entity has recently completed a research and development project. Which of the following statements is accurate?

A. Designing of jigs and tools qualify as research activities.

B. Costs incurred during the development phase can be capitalized if criteria such as technical feasibility of the project are met.

C. Training costs of technicians used in research can be capitalized.

D. Costs incurred during the research phase can be capitalized.

Which of the following items is a component of the cost of an internally generated intangible asset?

A. Fees to register a legal right.

B. Selling, administrative and other general overhead expenditures that cannot be directly attributed to preparing the asset for use.

C. Expenditures on training staff to operate the asset.

D. Identified inefficiencies and initial operating losses.

Which of the following costs would be capitalised as part of the cost of internally generating an intangible asset, subject to satisfying recognition criteria in IAS 38?

A. Costs of developing the business as a whole

B. Modification of the design of a product

C. Start-up costs of a new operation

D. Cost of marketing the new product

The following expenditures shall be expensed when incurred, except

A. Business relocation or reorganization costs

B. Advertising and promotion costs

C. Start up costs

D. Payments in advance of delivery of goods or the rendering of services

Amortization of an intangible asset with a finite useful life shall commence when

A. The costs can be identified with reasonable certainty

B. It is first recognized as an asset

C. It is available for use

D. It is probable that it will generate future economic benefits

Which of the following items should not be amortized over the periods of estimated benefits?

A. Franchise right.

B. Goodwill arising from the purchase of an existing business.

C. Computer software.

D. Patent right purchased from an investor.

An intangible asset is (choose the incorrect one)

A. An identifiable nonmonetary asset without physical substance

B. Held for use in the production or supply of goods or services, for rental to others, or administrative purposes

C. A resource controlled by an entity as a result of past event

D. A resource from which future economic benefits are expected to flow to the entity