Unless acquired under a business combination,intangible assets must be initially measured using which of the following measurement approaches?
A)discounted cash flows
B)fair value
C)net present value
D)cost.

Question

Quizplus · Accepted Answer

Intangible assets must be initially measured at cost, which includes all costs necessary to acquire and prepare the asset for its intended use. Discounted cash flows, fair value, and net present value are all methods used to estimate the fair value of an intangible asset for subsequent measurement and impairment testing purposes, but they are not used for initial measurement.

Unless Acquired Under a Business Combination,intangible Assets Must Be Initially