Which of the Following Statements Is Correct

question 5

Multiple Choice

Which of the following statements is correct?

• A) IAS 38 requires disclosures about an entity's intangible assets, with disclosures being made on an asset by asset basis;
• B) Disclosures about the useful lives of intangibles are required with explanations being required where assets are assessed to have finite useful lives;
• C) Where the cost model is used, specific disclosures are required including assumptions made on estimating fair values;
• D) Separate disclosures are required for internally generated intangibles.

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Definitions:

Stocks

Shares of ownership in a company, representing a claim on the company's assets and profits.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, and bank deposits.

Earn Revenue

The process by which businesses generate income through the sale of goods, provision of services, or other primary business activities.

Accounting Function

The process of recording, summarizing, analyzing, and reporting financial transactions of a business to oversight agencies, regulators, and the IRS.