11 which statement is not correct a goodwill represents the difference between the p 4306242

11 which statement is not correct a goodwill represents the difference between the p 4306242

11) Which statement is not correct?

A) Goodwill represents the difference between the purchase price and the fair value of net assets acquired.

B) Fair value is the amount at which an item could be sold in an arm's length transaction.

C) Economic goodwill differs from accounting goodwill and can be created by branding.

D) Fair value is the amount which could be exchanged in an arm's length transaction.

12) Which statement is not correct?

A) Goodwill equals the purchase price less the fair value of net assets acquired.

B) Intangible assets can be purchased or internally created.

C) Economic goodwill equals accounting goodwill and can be created by branding.

D) Intangible assets are identifiable assets without physical substance.

13) Which statement is correct?

A) Research is original or planned investigation to gather new knowledge or understanding.

B) Under IFRS all research costs can be either capitalized or expensed.

C) Research activities must be technically feasible as well as commercially viable.

D) Research is application of findings or knowledge towards new plans, designs or products.

14) Which statement is correct?

A) Under IFRS, research costs must fulfill six specific criteria.

B) Under IFRS, all research costs must be expensed as incurred.

C) Development activities must be technically feasible.

D) Adequate financial resources must exist to complete research activities.

15) Which statement is correct?

A) Costs can continue to be capitalized in the post development phase.

B) The project must meet IAS38 criteria before development costs can be capitalized.

C) The development phase includes generating new ideas or searching for new materials.

D) The research phase includes designing, constructing or testing a prototype.

16) Which statement is correct?

A) Capitalization of costs ceases when the post development phase begins.

B) The development phase includes generating new ideas or searching for new materials.

C) The project must meet IAS38 criteria before research costs can be capitalized.

D) The post development phase includes designing, constructing or testing a prototype.

17) Which criteria under IAS 38 would be met if the 'project plan outlines the timeline for the project'?

A) Measurement reliability.

B) Ability to use or sell.

C) Technical feasibility.

D) Management intention.

18) Which criteria under IAS 38 would be met if the 'project has a dedicated group of qualified staff'?

A) Technical feasibility.

B) Marketability of usefulness.

C) Resource adequacy.

D) Ability to use or sell.

19) Which criteria under IAS 38 would be met if there is a 'project plan that outlines specific costs with reasonable accuracy and reliability'?

A) Measurement reliability.

B) Management intention.

C) Technical feasibility.

D) Resource adequacy.

20) Which statement is correct about indefinite lived intangible assets?

A) This is an infinite lived asset.

B) The asset is expected to continue providing economic benefits for the foreseeable future.

C) Management does not know how long the asset is expected to provide economic benefits.

D) The asset has fixed and determinable cash flows.

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