CAF-1 · Chapter 6 · Question 13 of 15
Delta Corp acquired an intangible asset in a business combination. How should the cost of this asset be initially measured?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) At its fair value at the acquisition date.
Explanation
The cost of an intangible asset acquired in a business combination is its fair value at the acquisition date.
More IAS 38 Intangible Assets MCQs
- Q15Which of the following disclosures is NOT mandatory for intangible assets under IAS 38?
- 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?