Question 33 of 50

Which of the following best describes when an intangible asset developed internally may be capitalized under IFRS?

When one company acquires another under the acquisition method, how is goodwill determined?

Which statement most accurately distinguishes IFRS and US GAAP impairment tests for long-lived assets held and used?

A company prepares annual impairment tests for an indefinite-lived trademark. Under IFRS, how is impairment determined for this intangible?

Which of the following costs are most likely expensed immediately under IFRS during the research phase of an internal project?

Under the acquisition method, which of the following is true about identifiable intangible assets acquired in a business combination?

A company has an asset with carrying amount GBP18,000, undiscounted expected future cash flows GBP19,000, present value of expected future cash flows GBP16,000, fair value if sold GBP17,000 and costs to sell GBP2,000. Under IFRS, what is the impairment loss, if any?

Under US GAAP when testing a tangible asset held for use for impairment, what initial step is required?

Which of the following is NOT typical disclosure required by IFRS for a class of property, plant, and equipment?

Which accounting model for intangible assets permits reversing an impairment loss if recoverable amount later increases?

A company classifies an asset as 'held for sale' under IFRS. Which of the following is true upon reclassification?

When a company sells a long-lived asset, the gain or loss is computed as:

Which ratio is best for assessing how much revenue a firm generates from its investment in fixed assets?

Given straight-line depreciation with zero salvage, how can an analyst estimate average asset age from financial statement data?

Which disclosure element helps an analyst evaluate sensitivity of goodwill impairment tests?

When a company capitalizes development costs for internal-use software under US GAAP, which of the following statements is accurate?

Which statement about goodwill is correct under IFRS?

A company increases its allowance for inventory obsolescence. Which of the following immediate effects is most likely true assuming write-downs are recorded in cost of sales?

Under IFRS, which of the following statements about reversal of prior inventory write-downs is correct?

Which of the following best describes the accounting for acquisition-related intangible assets in a business combination?

Which of the following changes would most likely result in an increase in net PPE remaining useful life estimate?

Which disclosure is most helpful in evaluating whether reported fixed assets will require high near-term capital reinvestment?

A company discloses it capitalized borrowing costs during construction of a factory. Which immediate effect would this capitalization have on its financial statements relative to expensing those borrowing costs?

Which of the following is a key analytical reason to review the notes to the financial statements when assessing long-lived assets?

Which accounting outcome is most likely if a firm performs an impairment test and finds the carrying amount exceeds recoverable amount under IFRS?

When analyzing PPE age estimates, why should an analyst exclude land when possible?

Which of the following is true about impairment of assets classified as 'held for sale'?

If a company reports a large goodwill balance and significant negative sensitivity to a 1% increase in discount rate in its impairment note, what should an analyst conclude?

A company has a PPE balance reported under revaluation model (IFRS). Which analytical warning applies when comparing this firm to competitors using cost model (US GAAP)?

Which of the following is true about the accounting for internally developed patents under IFRS versus US GAAP?

Which of the following best explains why analysts often focus on type of intangibles acquired (brands, customer lists, technology) rather than exact fair value allocations after an acquisition?

A company's fixed-asset turnover is declining while depreciation expense is steady and capex has fallen below depreciation. Which interpretation is most consistent?

A firm reports significant additions to intangible assets under 'assets acquired in business combinations.' What analysis should an analyst perform?

Which of the following most likely indicates aggressive accounting related to long-lived assets?

Which action by management would most likely increase the probability that a deferred tax liability is effectively a future cash outflow (i.e., should be treated as debt rather than equity in analysis)?

Which disclosure would best allow an analyst to estimate how much of an acquired company's purchase price was allocated to brands with indefinite lives?

How does an impairment loss on PPE affect reported cash flow from operations under the indirect method?

Which of these is NOT required in IFRS disclosures for an intangible asset with an indefinite life?

Which measure indicates the number of years of remaining economic life of a company's asset base using year-end financial statement amounts?

During a business combination, the acquirer allocates purchase consideration to identifiable intangible assets. Which valuation approaches are commonly used for brands with indefinite lives?

Which of the following changes would most directly increase a company's reported depreciation expense in the next period?

Which statement about amortization of intangible assets with finite lives is correct?

An analyst finds a company has recognized a large impairment loss and simultaneously increased its allowance for doubtful accounts significantly. Which combined interpretation is most consistent?

Which of the following is the best reason an analyst would add back an impairment charge when computing adjusted EBITDA?

Which of the following is the most appropriate analyst action when an acquirer records a very large amount of goodwill from a recent acquisition?

Which of the following items would typically be included in the reconciliation of carrying amounts of property, plant, and equipment in the notes to financial statements?

In impairment testing, which of the following best defines 'value in use'?

Which of the following is a required disclosure for intangible assets under US GAAP that is explicitly emphasized?

Which of the following best captures why an analyst should adjust financial statements when comparing companies with different capitalization policies for development costs?