Professional Documents
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THEORY OF ACCOUNTS
ToA.1611 Intangible Assets
OCAMPO/CABARLES
MAY 2014
REVIEW QUESTIONS
1.
2.
PAS 38 applies to
a. Intangible assets that are not within the scope of
another Standard.
b. Financial assets, as defined in PAS 32 Financial
Instruments: Presentation.
c. The recognition and measurement of exploration
and evaluation assets.
d. Expenditure on the development and extraction of
minerals, oil, natural gas and similar nonregenerative resources.
Which is not within the definition of an intangible
asset?
a. Identifiable nonmonetary asset without physical
substance
b. A resource controlled by an entity as a result of
past event
c. A resource from which future economic benefits
are expected to flow to the entity
d. Held for use in the production or supply of goods
or services, for rental to others, or for
administrative purposes.
3.
4.
5.
6.
and
and
and
and
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d.
7.
8.
9.
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ToA.1611
c.
d.
I, II, III
c.
d.
I, II, III
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b.
c.
d.
I only
I and II only
I and III only
Neither I, II nor III
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d.
A company
relations.
has
exceptional
customer
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ToA.1611
c.
d.
2.
1.
When an intangible asset is acquired by an
exchange of assets, which of the following
measures will need to be considered in the
determination of that cost? The:
a. Fair value of the asset given up.
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3.
4.
5.
5.
6.
7.
13. c.
Are not subject to an amortization
charge;
14. d. Should not be amortized in a period in
which maintenance of the asset occurs.
15.
8. In relation to the amortisation of intangible
assets, the general rule in PAS 38 Intangibles, is
that unless demonstrated otherwise:
a. The residual value does not enter into the
determination of the amortisation charge.
b. The residual need no be reviewed at the end
of each annual reporting period.
c. All intangible assets have a residual value at
least equal to the amount of maintenance
costs incurred.
d. The residual value is presumed to be zero.
16.
9. Which
statement
is
incorrect
concerning
internally generated intangible asset?
a. To assess whether an internally generated
intangible asset meets the criteria for
recognition, an enterprise classifies the
generation of the asset into a research phase
and a development phase.
b. The cost of an internally generated asset
comprises all expenditure that can be
directly attributed or allocated on a
reasonable and consistent basis to creating,
producing and preparing the asset for its
intended use.
c. Internally generated brands, mastheads,
publishing titles, customer lists and items
similar in substance should not be
recognized as intangible assets.
d. Internally generated goodwill may be
recognized as an intangible asset.
17.
10. Internally generated goodwill is prohibited from
recognition in the financial statements of an
entity. The reason for this treatment is that:
a. Goodwill is not identifiable;
b. Goodwill is not measurable;
c. It is not comparable to any other intangible
assets;
d. It is not prudent to recognize intangible
assets.
18.
19. - end of ToA.1611 -
21.
22.
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