IAS 38 States That Intangible Assets

question 24

Multiple Choice

IAS 38 states that intangible assets:

• A)may not be revalued and must be amortised over their useful lives.
• B)are only able to be revalued if they have been internally generated and there is an active market for them.
• C)may only be revalued to their fair value as assessed by a licensed valuer.
• D)may be measured by using either the cost model or the revaluation model.

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Definitions:

Consumer Surplus

The incongruity between the maximum amount consumers are willing and able to pay for a good or service and the actual amount they end up paying.

Total Utility

The overall satisfaction or pleasure a consumer derives from consuming a certain amount or combination of goods and services.

Marginal Utility

The supplementary enjoyment or advantage gained by consuming one more unit of a good or service.

Consumer Surplus

The differentiation between the total investment consumers are willing and able to make in a product or service and the investment they end up making.