Accounting · Consolidated Financial Statements
An entity is preparing its consolidated financial statements under IFRS. Which of the following correctly describes the accounting treatment for intangible assets?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1A purchased license with an indefinite useful life should be amortised over a period of 20 years to reflect its consumption.
- 2Goodwill arising on the acquisition of a subsidiary should be amortised over its estimated useful life, not exceeding 10 years.
- 3Research expenditure incurred on a project that eventually leads to a successful patent can be reinstated as an asset once the commercial viability of the product is confirmed.
- 4An internally generated brand name of a subsidiary, not recognised in the subsidiary's own records, must be recognised at fair value in the consolidated financial statements if it is identifiable.✓
Correct answer
An internally generated brand name of a subsidiary, not recognised in the subsidiary's own records, must be recognised at fair value in the consolidated financial statements if it is identifiable.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Consolidated Financial Statements MCQs →Want more practice questions on Consolidated Financial Statements?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Consolidated Financial Statements