CAF-1 · Chapter 6 · Question 9 of 15
What is the assumed residual value of an intangible asset with a finite useful life, according to IAS 38?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Zero, unless there is a commitment by a third party to purchase it or an active market exists for it.
Explanation
The residual value of an intangible asset with a finite useful life is assumed to be zero unless a third party is committed to buying it at the end of its life, or an active market exists.
More IAS 38 Intangible Assets MCQs
- Q11Under SIC 32, when an entity develops a website for internal or external access, which costs can be capitalized as an intangible asset?
- Q12Which of the following costs should be included in the initial cost of a separately acquired intangible asset?
- Q13Delta Corp acquired an intangible asset in a business combination. How should the cost of this asset be initially measured?
- Q14When does the amortisation of an intangible asset with a finite useful life commence?
- Q15Which of the following disclosures is NOT mandatory for intangible assets under IAS 38?