chapter 6 - intangible assets

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• Which are the two criteria’s that must be fulfilled in order to recognize an (intangible) asset? It must be a future economic benefit and the company must have control
• How is goodwill in a business combination (IFRS3) calculated? The price paid for the business, less net asset value of identifiable assets/liabilities
• Explain the term “separable” in relation to intangible assets. It can be separated from the entity and sold
• Which of the following is an expenditure that can be included in intangibles? Design of tools involving new technology. Not startup costs, advertising and training
• Why is it difficult to recognize internally generated intangible assets? It is problematic to establish if it will generate future economic benefits
• Which of the following is not activities that arises in the development phase? Design and construction of a pilot plant, design and construction of a prototype, testing of new materials are activities but research of new deceases is not
• How is IAS36 applied on intangible assets with indefinite useful lives? Should be reviewed for impairment
• Why is internally generated goodwill not accepted as an asset? It is impossible to determine the cost

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