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CA Inter AS 26 Intangible Assets — practice questions — page 2

Explore 56 free AS 26 Intangible Assets questions in CA Inter Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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AS 26 Intangible Assets questions and exercises with answers

Showing questions 31–56 of 56.

After initial recognition, AS 26 carries an intangible at:Read the answer and worked solution →According to AS 26, the useful life of an intangible is always:Read the answer and worked solution →Life can exceed a finite legal-rights period only if renewal is:Read the answer and worked solution →A right has an economic life of 12 years but legal rights of 8 years, not renewable. Amortise over:Read the answer and worked solution →An intangible amortised over 15 years needs recoverable amount estimated:Read the answer and worked solution →An intangible still not available for use must be tested for impairment:Read the answer and worked solution →An intangible is removed from the balance sheet on disposal or when:Read the answer and worked solution →An intangible retired from use and held for disposal is carried at:Read the answer and worked solution →Disclosures are given for each class of intangibles, separating:Read the answer and worked solution →Which is listed as a separate class of intangible assets?Read the answer and worked solution →The R&D disclosure covers total R&D expenditure that was:Read the answer and worked solution →AS 26 requires disclosing carrying amounts of intangibles that are:Read the answer and worked solution →Describing a fully amortised intangible still in use is:Read the answer and worked solution →Goodwill arising on amalgamation is dealt with under:Read the answer and worked solution →Software without which a CNC machine cannot run is treated as:Read the answer and worked solution →An intangible is clearly distinguished from goodwill when it is:Read the answer and worked solution →Control over an intangible means power to obtain benefits and to:Read the answer and worked solution →Whether a mixed tangible-intangible asset is intangible depends on:Read the answer and worked solution →A patent costing Rs 12 lakh has an 8 year life and no third-party buy-back commitment. Annual amortisation?Read the answer and worked solution →Software of Rs 9 lakh, 3 year life, straight-line, nil residual. Value after 2 years?Read the answer and worked solution →An exclusive 30 year toll road right is expected to be used 30 years. Amortise over:Read the answer and worked solution →Impairment of an intangible is tested by applying which standard?Read the answer and worked solution →Which of these is a common example of an intangible asset?Read the answer and worked solution →Excess of enterprise market value over identifiable net assets is:Read the answer and worked solution →Amortising an intangible over 25 years requires disclosing:Read the answer and worked solution →The cost of reorganising part of an enterprise is:Read the answer and worked solution →

Worked practice questions

After initial recognition, AS 26 carries an intangible at:

  1. Revalued amount, reserve credit
  2. Cost net of amortisation, impairment
  3. Fair value revalued every year
  4. Lower of cost and market value
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Correct answer: B. Cost net of amortisation, impairment

The standard allows only the cost model, so the asset is held at cost less accumulated amortisation and impairment.

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According to AS 26, the useful life of an intangible is always:

  1. Equal to its legal life
  2. Indefinite for brand names
  3. Capped at ten years
  4. Finite though possibly long
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Correct answer: D. Finite though possibly long

A life may be very long but is never infinite, and uncertainty does not justify an unrealistically short life.

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Life can exceed a finite legal-rights period only if renewal is:

  1. Merely possible
  2. Likely but unconfirmed
  3. Virtually certain
  4. Cost-free to the firm
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Correct answer: C. Virtually certain

The rights must be renewable and renewal must be virtually certain before the life may go beyond the legal period.

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More Accounting topics

AS 3 Cash Flow StatementSchedule III Division I Financial StatementsAS 19 LeasesValuation of Inventories (AS 2)AS 22 Taxes on IncomeAS 28 Impairment of AssetsProperty, Plant and EquipmentAS 17 Segment Reporting