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29.12 Which of the following statements about intangible assets are correct?
1 If certain criteria are met, research expenditure must be recognised as an intangible asset.
2 The notes to the financial statements should disclose the gross carrying amount and the
accumulated amortisation at the beginning and the end of the period for each class of intangible
asset.
3 Intangible assets must be amortised over their useful life.
A 2 and 3 only
B 1 and 3 only
C 1 and 2 only
D All three statements are correct.
Ans:a
Source :BPPSir , here statement 3 is correct but those assets are amortized whose life is definite is not ?
30.11 Which of the following statements are correct?
1. Contingent assets are included as assets in financial statements if it is probable that they will
arise.
2. Contingent liabilities must be provided for in financial statements if it is probable that they will
arise.
3. Material non-adjusting events are disclosed by note in the financial statements.
A 1 only
B 1 and 3
C 2 and 3
D 3 only
And here sir, Ans is c but those liabilities provision is made whose reliable estimate can also be made .Sir , how to know the statement is going to be correct even if it is using must in it as in both statements ?
Thankyou!
29.12 I am not quite sure what you mean. An intangible asset will always have a definite life.
30.11 A contingent liability if where we know the amount but are not certain as to whether or not it will have to be paid. If we are not certain of the amount then we make a provision.
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