- This topic has 1 reply, 2 voices, and was last updated 1 year ago by
.
-
Posts
-
Identify which THREE of the following statements are true in relation to application of IAS 38 Intangible Assets.
True
1)Research costs should be expensed to the statement of profit or loss.
2)All types of goodwill can be capitalised.
3)Capitalised development costs that no longer meet the criteria specified by IAS 38 must be written off to the statement of profit or loss.
4)Capitalised development costs are amortised from the date the assets is available to use or sell.
5)Research costs written off can be re-capitalised when the developed asset is feasible.
6)Only purchased intangibles can be capitalised
1,3,4 are true but why not 6
Usually it is just purchased intangibles that are capitalised and internally generated intangibles are not capitalised.
However there are the following exemptions to this and the following internally generated intangibles can be capitalised:
Development costs (subject to the rules explained in my free lectures)
Internally developed software
The costs of registering and protecting an internally developed patent
- You must be logged in to reply to this topic.