CAF-1 · Chapter 6 · Question 14 of 15
When does the amortisation of an intangible asset with a finite useful life commence?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) When the asset is available for use, in the location and condition intended by management.
Explanation
Amortisation begins when the asset is available for use, meaning it is in the location and condition necessary for it to be capable of operating in the manner intended by management.
More IAS 38 Intangible Assets MCQs
- Q1Which of the following best describes the defining characteristics of an intangible asset under IAS 38?
- Q2Which of the following items is explicitly EXCLUDED from the scope of IAS 38 Intangible Assets?
- Q3Omega Corp spent Rs. 800,000 during the year to evaluate possible alternative materials for a new product line. Under IAS 38, how should…
- Q4Which of the following is NOT a required criterion for capitalizing development expenditure as an intangible asset?
- Q5Alpha Ltd has successfully developed a new brand name internally, spending Rs. 2 million on marketing and design. How should this…