Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 12, Problem 2BCC
Basis for Conclusions Case 2: Intangible Assets – Subsequent Measurement
Under certain circumstances, IFRS allows some intangible assets to be revalued, whereas U.S. GAAP does not allow revaluation. Read the Basis for Conclusions in IAS 38, Intangible Assets, particularly paragraphs BC76 and BC77. Does the IASB provide any insight as to why it decided to allow the revaluation of some intangible assets?
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Discuss the primary differences between U.S. GAAP and IFRS with respect to theutilization and impairment of property, plant, and equipment and intangible assets.
Which of the following statements is correct?
Question 1 options:
a
Some intangible assets have physical substance
b
Intangible assets are always classified as noncurrent assets even in cases where they are part of a disposal group.
c
The process of recording the expiration of the economic benefits of an intangible asset is called depletion.
d
Intangible assets can be obtained in one of two ways – external acquisition or internal development
How do the impairment test for indefinite-lived intangible assets and definite-lived intangible assets differ under US GAAP?
Chapter 12 Solutions
Intermediate Accounting
Ch. 12 - Prob. 12.1QCh. 12 - Can firms group all property, plant, and equipment...Ch. 12 - Prob. 12.3QCh. 12 - Prob. 12.4QCh. 12 - Do firms follow the same steps for impairment...Ch. 12 - Prob. 12.6QCh. 12 - Prob. 12.7QCh. 12 - Prob. 12.8QCh. 12 - Under IFRS, if a firm recovers an impairment loss...Ch. 12 - Under IFRS, when do firms test plant assets and...
Ch. 12 - Prob. 12.11QCh. 12 - Prob. 12.12QCh. 12 - Prob. 12.1MCCh. 12 - Prob. 12.2MCCh. 12 - Prob. 12.3MCCh. 12 - Prob. 12.4MCCh. 12 - Prob. 12.5MCCh. 12 - Prob. 12.6MCCh. 12 - Prob. 12.1BECh. 12 - Prob. 12.2BECh. 12 - Prob. 12.3BECh. 12 - Prob. 12.4BECh. 12 - Indefinite-Life Intangible Asset Impairment....Ch. 12 - Prob. 12.6BECh. 12 - Prob. 12.7BECh. 12 - Prob. 12.8BECh. 12 - Prob. 12.9BECh. 12 - Prob. 12.10BECh. 12 - Impairment Reversal. IFRS. Perlu Products an IFRS...Ch. 12 - Prob. 12.12BECh. 12 - Prob. 12.13BECh. 12 - Prob. 12.14BECh. 12 - Prob. 12.15BECh. 12 - Prob. 12.16BECh. 12 - Prob. 12.17BECh. 12 - Prob. 12.18BECh. 12 - Prob. 12.19BECh. 12 - Prob. 12.20BECh. 12 - Prob. 12.21BECh. 12 - Prob. 12.22BECh. 12 - Prob. 12.23BECh. 12 - Tangible Asset Impairment. Henne Optical...Ch. 12 - Tangible Asset Impairment Loss. Use the same...Ch. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Tangible Asset Impairment Loss, IFRS. Use the same...Ch. 12 - Prob. 12.7ECh. 12 - Prob. 12.8ECh. 12 - Prob. 12.9ECh. 12 - Assets Held for Disposal. Hattie Corporation...Ch. 12 - Prob. 12.11ECh. 12 - Asset Revaluation, Downwards, IFRS. Lousa Company...Ch. 12 - Tangible Asset Impairment. Chrispian Cookies, Inc....Ch. 12 - Prob. 12.2PCh. 12 - Tangible Asset Impairment. Using the same...Ch. 12 - Prob. 12.4PCh. 12 - Goodwill Impairment, Tangible Fixed Assets, and...Ch. 12 - Tangible Asset Impairment, Potential Reversal,...Ch. 12 - Prob. 12.7PCh. 12 - Prob. 12.8PCh. 12 - Prob. 12.9PCh. 12 - Comprehensive Asset Revaluation Problem (Initial...Ch. 12 - Prob. 12.11PCh. 12 - Judgment Case 1: Impairments of PPE under IFRS...Ch. 12 - Prob. 2JCCh. 12 - Prob. 3JCCh. 12 - Surfing the Standards Case 1: Impairments of PPE...Ch. 12 - Prob. 2SSCCh. 12 - Financial Statement Analysis Case 1: Long-Lived...Ch. 12 - Prob. 1BCCCh. 12 - Basis for Conclusions Case 2: Intangible Assets ...Ch. 12 - Basis for Conclusions Case 3: Goodwill Impairment...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- q19 Which statement is INCORRECT regarding recognition of intangible assets? Select one: a. An intangible asset should be initially recorded at cost. b. An intangible asset acquired in exchange of another asset can be recognized at the fair value of the asset given up in exchange. c. An intangible asset can only be recognized if its cost can be measured reliably. d. An intangible asset can be recorded at its fair value if its cost cannot be ascertained.arrow_forwardDescribe how the recognition and measurement requirements for Intangible Assets under AASB 138 differ from the recognition and measurement principles outlined for assets under the (revised) Conceptual Framework and explain the reasons why these differences may exist. Refer to AASB 138 and Conceptual Framework where appropriate (max. 250 words).arrow_forwardHow should any claim for compensation from third parties for impairment be accounted for ?arrow_forward
- What basic principle do U.S. GAAP and IFRS rely upon in recording the initial acquisition value for nearly all assets?arrow_forwardWhich of the following decision-making process does not require management discretion? a.Determining the level of provision for warranty b.making decisions about whether or not to adopt AASB in preparing financial statement in Australia c.Determining a useful life of property, plant and equipment d.Whether to use fair value or historical cost method to value buildings e.None of the abovearrow_forwardWhich of the following statements is correct? a. Both IFRS and GAAP permit revaluation of property, plant, and equipment. b. IFRS permits revaluation of property, plant, and equipment but not GAAP. c. Both IFRS and GAAP do not permit revaluation of property, plant, and equipment. d. GAAP permits revaluation of property, plant, and equipment but not IFRS.arrow_forward
- An entity that acquires an intangible asset may use the revaluation modelfor subsequent measurement only ifarrow_forwardAccounting for plant assets involves cost determination, depreciation, additional expenditures, and disposals. Is plant asset accounting broadly similar or dissimilar between IFRS and U.S. GAAP? Identify one notable difference between IFRS and U.S. GAAP in accounting for plant assets.arrow_forwardExplanation on the disclosure requirements for the accounting treatment of the intangible asset MRFS/ IRFS 138. Clear example with explanation on recognition , measurements , disclosure requirements for accounting treatment on intangible asset.arrow_forward
- What are the reason for seeking an acquisition of intangible assets?arrow_forward15) Which of the following costs should always be expensed as incurred? A) the costs of externally acquired identifiable intangible assets B) the costs incurred directly associated with establishing and successfully defending the rights associated with internally developed identifiable intangible assets C) the costs of internally developed unidentifiable intangible assets D) the costs of externally acquired unidentifiable intangible assetsarrow_forwardUnder U.S. GAAP, litigation costs to successfully defend an intangible right are capitalized and amortized over the remaining useful life of the related intangible. How are these costs typically accounted for under IFRS?arrow_forward
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