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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › intangible asset
Q1. if a co. paid for an online advertising campaign….and the directors believe that sales increased of that publicity for next 3 yrs. Still we will not capitalise it right under IAS 38 as we dont have control over the customers.Am i right?
Q2. A co. has developed a patented drug whose development cost is 20 million which will be capitalised. A specialist valuer estimated its market value at 30 million.
Question ask what will be the value of intangible asset in SOFP.
it will be still 20 million right…cause revaluation at fair value of Intangible asset is only applicable in presence of Active market.
Hi,
Q1. Correct, it is just a cost of improving the business overall
Q2. Correct, there needs to be an active market and the assets traded in that market need to be identical.
Good knowledge on intangibles!
Thanks