Which Statement Concerning the Accounting Treatment of Intangible Assets Under

question 16

Multiple Choice

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

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

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Definitions:

Illegal Drugs

Substances whose manufacture, possession, or use is prohibited by law.

Human Brain

The central organ of the human nervous system, responsible for thought, memory, emotion, touch, motor skills, vision, respiration, temperature control, and other functions.

Nerve Cells

Also known as neurons, specialized cells in the nervous system that transmit information through electrical and chemical signals.

Human Nervous System

The part of the body that coordinates its voluntary and involuntary actions and transmits signals to and from different parts of its body.