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A Company Follows IFRS and Chooses to Report Certain Intangible

Question 75

Multiple Choice

A company follows IFRS and chooses to report certain intangible assets at fair value. On January 1, 2019, it acquires software for €500,000. Estimated life is 5 years, straight-line. On December 31, 2019, the intangible has a fair value of €440,000. On December 31, 2020, its fair value is €390,000. How is this information reported on the 2020 financial statements?


A) Amortization expense €130,000; other comprehensive loss €50,000
B) Amortization expense €100,000; other comprehensive gain €80,000
C) Amortization expense €88,000; other comprehensive gain €38,000
D) Amortization expense €110,000; other comprehensive gain €60,000

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