Q12 Which of the following is correct about the initial measurement of intangible asset? Select one: a. The physical or tangible assets that were used as part of the development of the intangible asset should also be included in the cost. b. Research expenditure should also be included in the cost of the intangible asset if it was developed internally. c. An intangible asset should be recorded at cost which is the sum of expenditure incurred until the date that the asset first met the recognition criteria of an intangible asset. d. When an intangible asset is acquired in exchange of another asset, it should be recorded at its fair value at the date of acquisition.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Q12

Which of the following is correct about the initial measurement of intangible asset?

Select one:
a. The physical or tangible assets that were used as part of the development of the intangible asset should also be included in the cost.
b. Research expenditure should also be included in the cost of the intangible asset if it was developed internally.
c. An intangible asset should be recorded at cost which is the sum of expenditure incurred until the date that the asset first met the recognition criteria of an intangible asset.
d. When an intangible asset is acquired in exchange of another asset, it should be recorded at its fair value at the date of acquisition.
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