CAF-1 · Chapter 6 · Question 7 of 15
Which of the following conditions must be met for an entity to use the revaluation model for an intangible asset?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The fair value must be measured by reference to an active market.
Explanation
For the purpose of revaluations under IAS 38, fair value shall be measured strictly by reference to an active market, which is uncommon for most intangibles.
More IAS 38 Intangible Assets MCQs
- Q9What is the assumed residual value of an intangible asset with a finite useful life, according to IAS 38?
- Q10If an entity reassesses an intangible asset's useful life from 'indefinite' to 'finite', how is this change treated?
- 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?