Accounting · Intangible Assets (IAS 38)
A company has provided the following information regarding its assets for the year ended 31 December 20X1: 1. A customer list that was developed internally at a cost of $150,000. The company estimates its value to be $250,000 at the year-end. 2. A brand name that was developed internally at a cost of $75,000. 3. A licence to operate in a new market which was purchased for $500,000. This licence has an estimated useful life of 10 years. 4. An acquisition of a new subsidiary during the year, which had an internally generated customer list with a fair value of $80,000. How much should be recognized in intangible assets in the company's consolidated statement of financial position at 31 December 20X1, in accordance with IAS 38?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$830,000
- 2$755,000
- 3$580,000✓
- 4$500,000
Correct answer
$580,000
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