U.S.GAAP and IFRS require firms to recognize as assets identifiable intangibles acquired in external market transactions. Which of the following is/are true?
A)The exchange between an independent buyer and seller provides evidence of the existence of expected future benefits, and the exchange price provides evidence of the fair value of those benefits.
B)In external market transactions, identifiable intangibles include patents, trademarks, customer lists, and other economic resources ready for use, as well as in-process technologies with uncertain future benefits.
C)In external market transactions, identifiable intangible assets have either finite lives or indefinite lives.
D)In external market transactions, firms must amortize intangible assets with finite lives, generally using the straight-line method.
E)all of the above

Question

Quizplus · Accepted Answer

All of the statements are true regarding the recognition of identifiable intangible assets acquired in external market transactions under both U.S.GAAP and IFRS. The exchange between an independent buyer and seller provides evidence of future benefits and fair value, identifiable intangibles can include a range of assets such as patents, trademarks, and customer lists, and these assets can have either finite or indefinite lives. For intangibles with finite lives, firms must amortize them generally using the straight-line method.

USGAAP and IFRS Require Firms to Recognize as Assets Identifiable