Accounting · Intangible Assets (IAS 38)
Which of the following statements regarding the initial recognition and measurement of intangible assets under IAS 38 'Intangible Assets' is correct?
- 1All intangible assets with a finite useful life must be revalued to fair value at each reporting date if an active market for those assets exists.
- 2Training costs for staff to operate a newly developed production process should be capitalized as part of the development cost of the process.
- 3Development expenditure must be recognized as an intangible asset if the entity can demonstrate technical feasibility and intention to complete the asset, even if the expected future economic benefits are in the form of cost savings rather than revenue.✓
- 4Internally generated mastheads and publishing titles may be capitalized if their cost can be measured reliably.
Correct answer
Development expenditure must be recognized as an intangible asset if the entity can demonstrate technical feasibility and intention to complete the asset, even if the expected future economic benefits are in the form of cost savings rather than revenue.
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!
Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Want more practice questions on Intangible Assets (IAS 38)?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Intangible Assets (IAS 38)