Under IFRS, Many Intangible Assets Are Expensed Instead of Capitalized

question 56

Multiple Choice

Under IFRS, many intangible assets are expensed instead of capitalized.What is the effect on the future years of expensing intangible assets on the following ratios?
$\begin{array}{ll}&\text { Profit } & \text { Debt-to } \\&\text { Margin } & \text { Assets }\\\hlineA.&\text { Overstated } & \text { Overstated } \\B.&\text { Overstated } & \text { Understated } \\C.&\text { Understated } & \text { Overstated } \\D.&\text { Understated } & \text { Understated }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Condenser

A device used to condense a gas or vapor into a liquid, commonly found in air conditioning and refrigeration systems.

Objective

An objective is a specific, measurable, attainable, relevant, and time-bound goal that an individual or organization aims to achieve.

Focus Controls

Refers to mechanisms or systems put in place to maintain or adjust the focus in various equipment or processes.

Objectives

Specific, measurable targets set to achieve goals within a certain timeframe, often defining desired outcomes or achievements.