Which of the following statements relating to intangible assets is true? A All intangible assets must be carried at amortised cost or at an impaired amount, they cannot be revalued upwards B The development of a new process which is not expected to increase sales revenues may still be recognized as an intangible asset C Expenditure on the prototype of a new engine cannot be classified as an intangible asset because the prototype has been assembled and had physical substance D Impairment losses for a cash-generating unit are first applied to intangible assets before being applied to tangible assets
Which of the following statements relating to intangible assets is true? A All intangible assets must be carried at amortised cost or at an impaired amount, they cannot be revalued upwards B The development of a new process which is not expected to increase sales revenues may still be recognized as an intangible asset C Expenditure on the prototype of a new engine cannot be classified as an intangible asset because the prototype has been assembled and had physical substance D Impairment losses for a cash-generating unit are first applied to intangible assets before being applied to tangible assets
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statements relating to intangible assets is true?
A All intangible assets must be carried at amortised cost or at an impaired amount, they cannot
be revalued upwards
B The development of a new process which is not expected to increase sales revenues may still
be recognized as an intangible asset
C Expenditure on the prototype of a new engine cannot be classified as an intangible asset
because the prototype has been assembled and had physical substance
D Impairment losses for a cash-generating unit are first applied to intangible assets before
being applied to tangible assets
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