Under AASB 138,the Cost of Identifiable Intangible Assets That Are

question 27

Multiple Choice

Under AASB 138,the cost of identifiable intangible assets that are purchased separately is:

• A) the purchase price plus all cost directly attributable to preparing the asset for its intended use
• B) fair value at the date of acquisition
• C) the sum of expenditure incurred from the date the intangible assets first meet the recognition criteria
• D) none of the above

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Definitions:

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Corporate Controllers

Senior financial officers within a corporation responsible for overseeing accounting functions, financial reporting, and internal controls.

Accounting Functions

The systematic process of recording, analyzing, summarizing, and reporting the financial transactions of a business.

Collateral

Assets pledged by a borrower to secure a loan or other credit, ensuring the lender can seize these assets if the borrower fails to repay.