CAF-1 · Chapter 6 · Question 11 of 15
Under SIC 32, when an entity develops a website for internal or external access, which costs can be capitalized as an intangible asset?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Application and infrastructure development costs, provided IAS 38 recognition criteria are met.
Explanation
Under SIC 32, application and infrastructure development (like developing code) may be capitalized if they meet the recognition criteria for development costs under IAS 38.
More IAS 38 Intangible Assets MCQs
- 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?
- 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?