Under IAS 38/AASB 138 the Statement Concerning Internally Generated Intangible

question 40

Multiple Choice

Under IAS 38/AASB 138 the statement concerning internally generated intangible assets that is nottrue is:

• A)They can only be recognised if their cost can be measured reliably
• B)It is likely that the cost of internally generated brand names,mastheads and customer lists can be measured reliably
• C)The tests for recognising internally generated intangibles are more stringent than for recognising internally generated property,plant and equipment
• D)If patents and copyrights are deemed to be in the research phase all expenditure incurred should be expensed rather than capitalised

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Definitions:

Performance Evaluation

The process of assessing the effectiveness, efficiency, and productivity of an individual, group, or entity.

Cost Center

A department or segment within an organization that does not directly contribute to profit but incurs costs.

Total Costs

The sum of all expenses incurred by a business in producing goods or services, including fixed and variable costs.

Specified Output

A defined amount or quality of work that must be produced, typically set as a target or requirement.