Which Statement Concerning the Accounting Treatment of Intangible Assets Under

question 52

Multiple Choice

Which statement concerning the accounting treatment of intangible assets under IAS 38/AASB 138 is correct?

• A) Goodwill can be purchased or sold as a separate asset.
• B) An intangible asset is defined as an asset without physical substance.
• C) Any internally generated trademark or brand name can be recognised as an asset.
• D) IAS 38/AASB 138 accepts the view that some intangible assets have unlimited lives and therefore should not be amortised.

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Definitions:

Debt Instruments

Financial vehicles representing a promise to pay back borrowed funds, including bonds, notes, and debentures.

Unanimous Approval

Agreement or consent by all members or parties involved without any dissent.

51% Majority Vote

A decision-making process where more than half (51% or more) of the votes cast by members of a group are in agreement, thereby determining the outcome.

Lockup Agreement

A contract between a target corporation and a white knight, giving the knight an option to buy valuable property should a hostile bidder gain control of the target corporation.