Under IAS 38/AASB 138, Which Statement Concerning Internally Generated Intangible

question 33

Multiple Choice

Under IAS 38/AASB 138, which statement concerning internally generated intangible assets is not true?

• 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:

Trademark

A sign, term, or expression officially recorded or recognized through usage, symbolizing a corporation or merchandise.

Copyright Act

Legislation that grants creators of original works exclusive rights to their use and distribution, usually for a limited time, with the aim of encouraging the creation of art and culture.

Public Domain

The category of works that are no longer copyrighted and may be used by anyone.

Copyright Act

Legislation that grants creators exclusive rights to their original works, including reproduction, distribution, and adaptation rights.