Subsequent to initial recognition of an intangible asset,an entity may choose to measure the asset using either the:
A)gross model or revaluation model.
B)cost model or cash flow model.
C)cost model or revaluation model.
D)net model or gross model.

Question

Quizplus · Accepted Answer

The intangible asset can be measured using the cost model or revaluation model. Under the cost model, the asset is initially recognized at cost and subsequently carried at cost less accumulated amortization and impairment losses. Under the revaluation model, the asset is initially recognized at cost and subsequently revalued to fair value less any accumulated amortization and impairment losses. The entity can choose to use either model but must apply the chosen model consistently for all intangible assets within the same class. However, the gross model and cash flow model are not options for measuring intangible assets.

Subsequent to Initial Recognition of an Intangible Asset,an Entity May