IFRS Permits Some Capitalization of Internally Generated Intangible Assets, If

question 126

True/False

IFRS permits some capitalization of internally generated intangible assets, if it is probable there will be a future benefit and the amount can be readily measured.

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Definitions:

Unearned Subscriptions

A liability account that represents payments received by a company for subscriptions that have not yet been earned because the service has not been provided.

Deferral

An accounting principle that postpones the recognition of an expense or revenue to a future accounting period.

Accrual

The accounting method that recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged.

Unexpired Insurance

The portion of paid insurance premiums that is applicable to future periods, representing coverage that has not yet been used or expired.