During an Acquisition, When Should Intangible Assets NOT Be Recognized

question 55

Multiple Choice

During an acquisition, when should intangible assets NOT be recognized apart from Goodwill?

• A) The assets have been identified but not accounted for by the subsidiary.
• B) The assets have been identified and accounted for by the subsidiary.
• C) The assets can be sold, licensed or exchanged.
• D) The assets have been accounted for by the subsidiary but have no Fair Value on the date of acquisition.

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Definitions:

Patents

Legal documents that grant inventors exclusive rights to their inventions for a certain period, preventing others from making, using, or selling them without permission.

Imitation

The act of copying or closely replicating the products, services, or processes of competitors or industry leaders.

Marginal Utility

The extra satisfaction or utility gained by consuming one more unit of a good or service.

Substitute Products

Products that can serve as replacements for each other when their prices change or consumer preferences differ.