Which of These Is Not Correct Under AASB 138 Concerning

question 32

Multiple Choice

Which of these is not correct under AASB 138 concerning the measurement of intangible assets subsequent to acquisition?

• A) If the revaluation model is used, amortisation is not required even if the useful life of the asset is finite
• B) With both the cost and the revaluation models, all assets should be regularly tested for impairment
• C) If the cost model is used, amortisation is required if the useful life of the asset is finite
• D) The revaluation model is only permitted to be used if there is an active market for the asset

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Definitions:

Lessee

A person or entity who leases or rents property from a lessor, obtaining the rights to use and occupy the property according to the terms of the lease agreement.

Title Does Not Pass

A legal principle indicating that the ownership of a property or asset has not been transferred from the seller to the buyer, often due to certain conditions not being met.

CISG

Stands for the United Nations Convention on Contracts for the International Sale of Goods, which provides a uniform framework for international commerce.

Risk Of Loss

The potential that an investment's value may decrease, or that the property may be destroyed, damaged, or lost, impacting the holder's financial position.